lic housing agency, the Secretary of Housing and Urban 
Development shall make, for any public housing agency 
impacted by Hurricane Katrina, Rita, or Wilma, such ad-
justments as are appropriate to provide adequate funding 
to adjust for reduced voucher leasing rates and increased 
housing costs arising from such hurricanes. 
SEC. 303. PRESERVATION OF PROJECT-BASED HOUSING AS-
SISTANCE 
PAYMENTS 
CONTRACTS 
FOR 
DWELLING UNITS DAMAGED OR DESTROYED. 
(a) TOLLING
OF
CONTRACT
TERM.—Notwith-
standing any other provision of law, a project-based hous-
ing assistance payments contract for a covered assisted 
multifamily housing project shall not expire or be termi-
nated because of the damage or destruction of dwelling 
units in the project by Hurricane Katrina or Rita. The 
expiration date of the contract shall be deemed to be the 
later of the date specified in the contract or a date that 
is not less than three months after the dwelling units in 
the project or in a replacement project are first made hab-
itable. 
(b) OWNER
PROPOSALS
FOR
REUSE
OR
RE-
SITING.—The Secretary of Housing and Urban Develop-
ment shall promptly review and shall approve all feasible 
proposals made by owners of covered assisted multifamily 
housing projects submitted to the Secretary, not later than
October 1, 2007, that provide for the rehabilitation of the 
project and the resumption of use of the assistance under 
the contract for the project, or, alternatively, for the trans-
fer, pursuant to subsection (c), of the contract or, in the 
case of a project with an interest reduction payments con-
tract, of the remaining budget authority under the con-
tact, to another multifamily housing project. 
(c) TRANSFER OF CONTRACT.—In the case of any 
covered assisted multifamily housing project, the Sec-
retary of Housing and Urban Development shall—
(1) in the case of a project with a project-based 
rental assistance payments contract described in 
subparagraph (A), (B), or (C) of subsection (d)(2), 
transfer the contract to another appropriate and 
habitable existing project or a project to be con-
structed (having the same or a different owner); and 
(2) in the case of a project with an interest re-
duction payments contract pursuant to section 236 
of the National Housing Act, use the remaining 
budget authority under the contract for interest re-
duction payments to reduce financing costs with re-
spect to dwelling units in other habitable projects 
not currently so assisted, and such dwelling units 
shall be subject to the low-income affordability re-
strictions applicable to projects for which such pay-
ments are made under section 236 of the National 
Housing Act. 
A project to which a project-based rental assistance pay-
ments contract is transferred may have a different number 
of units or bedroom configuration than the damaged or 
destroyed project if approximately the same number of in-
dividuals are expected to occupy the subsidized units in 
the replacement project as occupied the damaged or de-
stroyed project. 
(d) DEFINITIONS.—For purposes of this section: 
(1) COVERED ASSISTED MULTIFAMILY HOUSING 
PROJECT.—The term ‘‘assisted multifamily housing 
project’’ means a multifamily housing project that—
(A) as of the date of the enactment of this 
Act, is subject to a project-based rental assist-
ance payments contract (including pursuant to 
subsection (a) of this section); and 
(B) that was damaged or destroyed by 
Hurricane Katrina or Hurricane Rita of 2005. 
(2) PROJECT-BASED RENTAL ASSISTANCE PAY-
MENTS CONTRACT.—The term ‘‘project-based rental 
assistance payments contract’’ includes—
(A) a contract entered into pursuant to 
section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f);
(B) a contract for project rental assistance 
pursuant to section 202(c)(2) of the Housing 
Act of 1959 (12 U.S.C. 1701q(c)(2)); 
(C) a contract for project rental assistance 
pursuant to section 811(d)(2) of the Cranston-
Gonzalez National Affordable Housing Act (42 
U.S.C. 8013(d)(2)); and 
(D) an interest reduction payments con-
tract pursuant to section 236 of the National 
Housing Act (12 U.S.C. 1715z–1). 
SEC. 304. TENANT REPLACEMENT VOUCHERS FOR ALL 
LOST UNITS. 
There is authorized to be appropriated for fiscal year 
2008 such sums as may be necessary to provide tenant 
replacement vouchers under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) for the number 
of households that is equal to—
(1) the number of assisted dwelling units 
(whether occupied or unoccupied) located in covered 
assisted multifamily housing projects (as such term 
is defined in section 303(d) of this Act) that are not 
approved for reuse or re-siting by the Secretary; plus 
(2) the number of public housing dwelling units 
that, as of August 28, 2005, were located in areas 
affected by Hurricane Katrina and were considered