graph) so as to be indented two ems from 
the left margin; and 
(C) in paragraph (5)(G)(i)(I), by striking 
‘‘, as the case may be,’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(i) PREPAYMENT
OF SECTION 515 MULTIFAMILY 
HOUSING LOANS.— 
‘‘(1) ADMINISTRATION.— 
‘‘(A) PLAN.—The Secretary shall develop a 
plan to administer requests to prepay (not made 
in connection with any revitalization under sec-
tion 544) any loan made under section 515. The 
plan shall provide for administration of voucher 
assistance in accordance with paragraph (3). 
The plan shall encourage and facilitate owners of 
projects to maintain the projects, or to transfer 
projects to owners who will maintain projects, as 
housing affordable to low-income residents, but 
shall not prevent an owner from prepaying. 
‘‘(B) 
IMPLEMENTATION.—The 
Secretary 
shall implement this subsection not later than 
the expiration of the 90-day period beginning on 
the date of the enactment of the Saving Amer-
ica’s Rural Housing Act of 2006. Notwith-
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standing that full implementation of this sub-
section may not have been completed, the Sec-
retary may not delay the processing of any re-
quest to prepay a loan made under section 515. 
‘‘(2) NOTICE
OF
PREPAYMENT
OR
SALE.—In 
preparation for prepayment of a loan made or in-
sured under section 515, the project owner shall, not 
less than 120 days before the date of prepayment of 
the loan or sale of the project for which the loan was 
made, provide the following notices: 
‘‘(A) NOTICE TO TENANTS.—To the tenants 
of the project, notice of the prepayment, as fol-
lows: 
‘‘(i) The notice shall include informa-
tion sufficient to inform each tenant of the 
plan after prepayment for the project, in 
which they reside as a tenant, and whether 
such plan may result in, or is likely to re-
sult in, the tenant being required to move 
and the earliest date that the tenant’s lease 
will expire or the tenant may have to move, 
and of the availability of vouchers pursuant 
to paragraph (3), actions tenants must take 
to receive voucher assistance, the date pre-
payment is expected to take place, a tele-
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phone number and electronic mail address 
at which to contact the owner of the project, 
and any limitations, use, and other terms 
the Secretary considers appropriate. 
‘‘(ii) In the case of any prepayment 
involving transfer of the ownership of a 
project, the notice shall include the name of 
the transferee, the date that the transfer was 
agreed to, the date the transfer is to take 
place, and telephone numbers and electronic 
mail addresses at which to contact the 
transferor and transferee. 
‘‘(B) NOTICE TO SECRETARY.—To the Sec-
retary, notice that the requirements under sub-
paragraph (A) have been met, which shall iden-
tify the date that notice under such subpara-
graph was made and the names of each tenant 
to which such notice was provided. 
‘‘(3) RURAL TENANT PROTECTION VOUCHERS.— 
‘‘(A) IN GENERAL.—In the case of a housing 
project subject to a loan made under section 515, 
if the loan is prepaid or foreclosed upon, the Sec-
retary shall, to the extent that amounts for as-
sistance under this paragraph are provided in 
advance in appropriation Acts, offer voucher as-
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sistance to each low-income family who on the 
date that notice is provided in accordance with 
paragraph (2)(A) is residing in a dwelling unit 
in the project. 
‘‘(B) USE.—A voucher under this para-
graph for a family may be used for rental of a 
dwelling unit in the project that the family re-
sides in on the date of the notice in accordance 
with paragraph (2)(A) or for a dwelling unit 
elsewhere. 
‘‘(C) RENEWAL.—Vouchers under this para-
graph shall be renewed annually, subject to the 
availability of appropriations for such renewal, 
during the period that the family assisted re-
mains eligible for such assistance. 
‘‘(D) RIGHT
TO
USE.—In the case of a 
project for which a loan made under section 515 
is prepaid— 
‘‘(i) a family residing in such project 
on the date of prepayment may elect to re-
main in the unit in which the family was 
residing on such date; and 
‘‘(ii) the owner of the project may not 
refuse to lease, to a family for whom vouch-
er assistance under this paragraph is made 
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available, any available rental dwelling 
unit in the project. 
‘‘(E) 
AMOUNT
OF
ASSISTANCE.—The 
amount of rental assistance provided under a 
voucher under this paragraph on behalf of a ten-
ant shall be the amount by which— 
‘‘(i) the lesser of 
‘‘(I) the rent for the dwelling unit 
rented using such voucher, or 
‘‘(II) the rent for a comparable 
unit in the same market area as the 
housing project for which the loan was 
prepaid; exceeds 
‘‘(ii) the lesser of 
‘‘(I) the amount of rent paid by 
the tenant for the dwelling unit occu-
pied by the tenant at the time of the 
prepayment referred to in paragraph 
(1), or 
‘‘ (II) the amount equal to 30 per-
cent of the tenant’s adjusted income (as 
such term is defined in section 3(b) of 
the United States Housing Act of 1937 
(42 U.S.C. 1437a(b)). 
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‘‘(F) RURAL AFFORDABLE VOUCHER.—For 
communities with insufficient affordable housing 
alternatives, and in the case of any elderly or 
disabled tenant who is eligible for a voucher 
under this paragraph and has a need to move to 
another community to be near immediate family 
or necessary medical services, as determined by 
the Secretary, voucher assistance under this 
paragraph may be provided in accordance with 
section 8(t)(1) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(t)(1)). 
‘‘(G) ADMINISTRATION.—To the maximum 
extent practicable, the Secretary shall administer 
voucher assistance under this paragraph in ac-
cordance with, but not subject to, regulations and 
administrative guidance for housing vouchers 
administered by the Secretary of Housing and 
Urban Development under section 8 of such Act. 
‘‘(H) HOMEOWNERSHIP OPPORTUNITIES.— 
A voucher under this paragraph may be used by 
a tenant to make payments towards the purchase 
of a single-family home anywhere in the United 
States, subject to subsidy limits for vouchers 
under this title and the same limitations appli-
cable under section 8(y) of the United States 
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Housing Act of 1937 (42 U.S.C. 1437f(y)) to the 
use of tenant-based assistance under such section 
8 for homeownership. 
‘‘(I) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated 
for tenant protection vouchers under this para-
graph— 
‘‘(i) for fiscal year 2007, $74,000,000; 
and 
‘‘(ii) for each of fiscal years 2008 
through 2011, the amount necessary to pro-
vide vouchers in each such fiscal year for all 
of the families identified in subparagraph 
(A). 
‘‘(4) PREPAYMENT
STANDARDS
FOR
PRE-1989 
LOANS.—In the case of a loan made or insured under 
section 515 pursuant to a contract entered into before 
December 15, 1989: 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall approve any offer 
to prepay such a loan that meets the following 
requirements: 
‘‘(i) The borrower under the loan has 
not been provided any assistance to extend 
low-income 
use 
pursuant 
to 
section 
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502(c)(4) of this Act, as such section was in 
effect before the date of the enactment of the 
Saving America’s Rural Housing Act of 
2006. 
‘‘(ii) The loan was not at any time re-
stricted by servicing actions, including 
transfers. 
‘‘(iii) The 20-year period during which 
the project is subject to use restrictions 
under the loan has concluded. 
‘‘(B) PROHIBITION.—The Secretary may 
not approve any offer to prepay such a loan dur-
ing the 20-year period during which the project 
is subject to use restrictions under the loan. 
‘‘(5) SALE RESTRICTIONS AND MARKETING AS-
SISTANCE.— 
‘‘(A) SALE RESTRICTIONS.—During the pe-
riod that begins upon the owner providing notice 
to the Secretary under paragraph (2)(B) and 
having a duration of 75 days, the owner may 
not sell the property except to a purchaser who 
enters into such binding agreements for purchase 
at market rates as the Secretary considers nec-
essary to continue the property use restrictions 
with respect to the project in accordance with 
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this title for a period of 20 years. This para-
graph may not be construed to prohibit an 
owner, during such period, from soliciting or re-
ceiving any offers of sale or purchase. 
‘‘(B) MARKETING ASSISTANCE.— 
‘‘(i) DATABASE
OF
POTENTIAL
BUY-
ERS.—The Secretary shall establish and 
maintain a database of potential buyers of 
projects with loans made under section 515. 
Such database shall include only persons 
who have expressed an interest to the Sec-
retary in purchasing such projects at fair 
market value and maintaining the projects 
for use as affordable housing. 
‘‘(ii) PUBLIC
NOTIFICATION
OF
PRE-
PAYMENT.—Upon notification to the Sec-
retary under paragraph (2)(B) regarding 
prepayment of a loan for a project, the Sec-
retary shall make publicly available, on the 
appropriate World Wide Web site of the De-
partment or by other appropriate electronic 
method, including individual notification, a 
notice containing information sufficient, in 
the determination of the Secretary, to notify 
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persons with an interest in purchasing the 
project of the prepayment.’’. 
SEC. 4. CONFORMING AMENDMENTS TO TITLE V OF THE 
HOUSING ACT OF 1949. 
Title V of the Housing Act of 1949 is amended— 
(1) in section 502(b)(2) (42 U.S.C. 1472(b)(2))— 
(A) by striking ‘‘or 515’’; and 
(B) by inserting before the semicolon at the 
end the following: ‘‘and any prepayment of a 
loan made or insured under section 515 shall be 
subject to the provisions of subsection (i)’’; and 
(2) in section 537(b)(1) (42 U.S.C. 1490p– 
1(b)(1)), by inserting before the semicolon the fol-
lowing: ‘‘and to administer the revitalization pro-
gram under section 544’’. 
SEC. 5. EFFECTIVE DATE. 
This Act and the amendments made by this Act shall 
take effect on October 10, 2007. 
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Union Calendar No. 348 
109TH CONGRESS 
2D SESSION 
H. R. 5039 
[Report No. 109–604] 
A BILL 
To establish a program to revitalize rural multi-
family housing assisted under the Housing Act of 
1949. 
JULY 27, 2006 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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