I 
109TH CONGRESS 
1ST SESSION H. R. 2654
To provide for renewal of project-based assisted housing contracts at reim-
bursement levels that are sufficient to sustain operations, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 26, 2005
Mr. ANDREWS introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To provide for renewal of project-based assisted housing con-
tracts at reimbursement levels that are sufficient to sus-
tain operations, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EXTENSION OF SECTION 8 CONTRACT RENEW-
ALS. 
(a) RENEWAL OF EXPIRING PROJECT-BASED SEC-
TION 8 CONTRACTS.—Section 524 of the Multifamily As-
sisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note) is amended—
(1) in subsection (a)(4)(A)(iv)—
(A) in subclause (I), by inserting ‘‘or’’ 
after the semicolon; 
(B) by striking subclause (II); and 
(C) by redesignating subclause (III) as 
subclause (II); and 
(2) by striking paragraph (3) of subsection (b). 
(b) ADJUSTMENTS FOR COVERED PROJECTS.—
(1) RENT
DETERMINATION
AT
INITIAL
RE-
NEWAL AFTER ENACTMENT.—Upon the first request 
for renewal of project-based assistance pursuant to 
section 524 after the date of enactment of this Act 
by an owner of a covered housing project—
(A) the rent levels at which assistance will 
be provided pursuant to such renewal will be 
determined as if such renewal were the initial 
renewal of a contract for assistance under sec-
tion 524, as amended by subsection (a) of this 
section; and 
(B) solely for purposes of determining the 
rent levels at which assistance will be provided 
pursuant to such first renewal after the date of 
enactment of this Act, in the case of a project 
for which contract rents were reduced on a 
prior renewal of an expiring contract pursuant 
to subsection (b)(3) of section 524, as in effect
on the day before the date of enactment of this 
Act, the contract rent levels in effect imme-
diately prior to such first renewal after the date 
of enactment of this Act shall be considered to 
be the deemed rent levels described in para-
graph (3)(C). 
(2) RENT
ADJUSTMENTS
AFTER
INITIAL
RE-
NEWAL AFTER ENACTMENT.—After the first renewal 
of a contract for assistance of a covered project after 
the date of enactment of this Act in accordance with 
paragraph (1) of this subsection, the Secretary shall 
adjust rents in accordance with section 524(c). 
(3) DEFINITIONS.—In this subsection—
(A) references to ‘‘section 524’’ or any 
subdivision thereof are references to section 524 
of the Multifamily Assisted Housing Reform 
and Affordability Act of 1997 (42 U.S.C. 1437f 
note); 
(B) the term ‘‘covered housing project’’ 
means a project that receives project-based as-
sistance under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) which 
was renewed prior to the date of enactment of 
this Act pursuant to subsection (b)(3) of sec-
tion 524, as in effect on the day before the date 
of enactment of this Act; 
(C) the term ‘‘deemed rent levels’’ means 
the contract rent levels in effect immediately 
prior to the first renewal of assistance pursuant 
to subsection (b)(3) of section 524, as in effect 
on the day before the date of enactment of this 
Act, upon which contract rent levels were re-
duced, as adjusted by the applicable operating 
cost adjustment factor established by the Sec-
retary at the date of such renewal and at the 
date of any subsequent renewal pursuant to 
subsection (b)(3) of section 524 occurring be-
fore the date of enactment of this Act; and 
(D) the term ‘‘Secretary’’ means the Sec-
retary of Housing and Urban Development.
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