‘‘(B) CONTENTS.—Each long-term viability 
plan for an eligible project shall include the fol-
lowing information: 
‘‘(i) COMPREHENSIVE NEEDS ASSESS-
MENT.—A comprehensive needs assess-
ment of the project that identifies and 
projects, for the following 20 years— 
‘‘(I) all necessary repairs, im-
provements, maintenance, and man-
agement standards for the project, 
and when they will be made, in order 
to meet the requirements of this title; 
and 
‘‘(II) the costs associated with 
the items referred to in this subpara-
graph (A). 
‘‘(ii) FINANCIAL
PLAN.—A financial 
plan for the project that— 
‘‘(I) reviews the financial stability 
of the project; 
‘‘(II) includes the loan restruc-
turing elements, rent adjustments, 
management and operational effi-
ciencies, and other financial adjust-
ments to the project that are nec-
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essary to cover operating expenses for 
the project and maintain an adequate 
financial reserve for the future main-
tenance and capital needs of the 
project; 
‘‘(III) provides the project owner 
with a long-term rate of return on 
new capital, including any portion of 
low-income housing tax credit pro-
ceeds used for hard construction 
costs, as determined by the Secretary, 
commensurate to comparable commer-
cial multifamily housing projects; 
‘‘(IV) meets the comprehensive 
needs for the project determined 
under the comprehensive needs assess-
ment; and 
‘‘(V) ensures that rents available 
under the plan are affordable to eligi-
ble households in accordance with 
paragraph (7). 
‘‘(C) DEVELOPMENT
THROUGH
PARTICI-
PATING ADMINISTRATIVE ENTITIES.—The Sec-
retary may develop long-term viability plans 
through the use of third-party participating ad-
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ministrative entities, who may be a private con-
tractor, a State housing finance agency, or a 
nonprofit organization. 
‘‘(D) REVITALIZATION DETERMINATION.— 
Based on the long-term viability plan for an eli-
gible project, the Secretary shall determine 
whether to offer the project owner a financial 
restructuring plan under paragraph (4) and the 
financial incentives to be included in any such 
plan offered. 
‘‘(E) FINAL
REVIEW
AND
COMMENT.— 
With respect to any long-term viability plan 
prepared by the Secretary, the Secretary shall 
provide the project owner an opportunity to re-
view the plan and discuss the plan with the Sec-
retary or its agent before a determination is 
made under subparagraph (D). 
‘‘(F) FEES.—The Secretary may charge 
the project owner a fee for preparation of the 
long-term viability plan. 
‘‘(G) PAYMENT OF FEES.—If a long-term 
viability for a project is approved, the payment 
of such fee may be incorporated into a project 
owner’s financial restructuring plan for the 
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project provided by the Secretary pursuant to 
paragraph (4) 
‘‘(4) FINANCIAL RESTRUCTURING PLAN; REVI-
TALIZATION INCENTIVES.—Based on the long-term 
viability plan for an eligible project, the Secretary 
may offer a project owner a financial restructuring 
plan for the project. Such a plan may include one 
or more of the following revitalization incentives: 
‘‘(A) Reduction or elimination of interest 
on the loan for the project made under section 
515. 
‘‘(B) Partial or full deferral of payments 
due under such loan. 
‘‘(C) Forgiveness of such loan. 
‘‘(D) Subordination of such loan, subject 
to such terms and conditions as the Secretary 
shall determine. 
‘‘(E) Reamortization of loan payments 
under such loan over extended terms. 
‘‘(F) A grant from the Secretary for the 
project. 
‘‘(G) Payment of project costs associated 
with developing the long-term viability plan. 
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‘‘(H) Opportunity for project owners to ob-
tain further investment equity from third par-
ties in the project. 
‘‘(I) A direct loan or guarantee of a loan 
for the project, with a subsidized interest rate 
without regard to the value of the project. 
‘‘(5) LONG-TERM USE AGREEMENT.— 
‘‘(A) IN GENERAL.—If the owner of an eli-
gible project agrees to the terms of a financial 
restructuring plan for the project providing re-
vitalization benefits under paragraph (4), in ex-
change for such benefits, the Secretary and the 
project owner shall enter into a long-term use 
agreement under this paragraph for the project. 
‘‘(B) 
AGREEMENT.—A 
long-term 
use 
agreement for an eligible project shall include— 
‘‘(i) the terms of the financial restruc-
turing plan for the project, including any 
revitalization incentives to be provided; 
‘‘(ii) an agreement by the project 
owner— 
‘‘(I) to continue the property use 
restrictions with respect to the project 
in accordance with this title for a pe-
riod of (aa) 20 years, or (bb) the re-
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maining term of any loans under this 
title for the project, whichever ends 
later; 
‘‘(II) to comply with the long- 
term viability plan for the project; 
‘‘(III) to comply with the rent 
terms under paragraph (7) for the 
project; and 
‘‘(IV) to make value payments 
under paragraph (6) to the Secretary, 
and the terms of such payments; 
‘‘(iii) 
provisions 
terminating 
the 
agreement if any revitalization incentives 
for the project to be provided under the 
agreement are no longer available and the 
Secretary determines that such unavail-
ability is not the fault of the owner; 
‘‘(iv) any rent terms for the project 
pursuant to paragraph (7); 
‘‘(v) a covenant which runs with the 
land; and 
‘‘(vi) such other terms as the Sec-
retary determines are necessary to imple-
ment the purposes of this section. 
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‘‘(6) SHARED
VALUE
AGREEMENTS.—Each 
long-term use agreement shall include a shared value 
agreement secured by the property of the eligible 
project that is the subject of the long-term use 
agreement, which shall determine how proceeds are 
divided at the end of the term of the loan and shall 
require the project owner, at the end of such loan 
term, to pay the lesser of— 
‘‘(A) the sum of— 
‘‘(i) 
the 
amounts 
of 
any 
loan 
writedowns, write-offs, and interest sub-
sidies provided in connection with the loan 
restructuring under this subsection, at the 
closing of revitalization; 
‘‘(ii) any outstanding principal and in-
terest; and 
‘‘(iii) any non-loan funds provided by 
the Secretary under this subsection; or 
‘‘(B) 75 percent of the appraised value of 
the eligible project. 
‘‘(7) RENTS UNDER LONG-TERM USE AGREE-
MENT.—In any eligible project that is subject to a 
long-term use agreement, rents for eligible house-
holds shall comply with the following requirements: 
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‘‘(A) MINIMUM RENT.—The Secretary, act-
ing through the director of the applicable local 
agency or office of the Department responsible 
for carrying out the programs under this title 
in such area, may provide that each eligible 
household is charged a minimum monthly rent 
in an amount determined by such local director 
that does not in any case exceed $25. The Sec-
retary may allow exceptions to such minimum 
rent for an eligible household or groups of eligi-
ble households for demonstrated hardship, as 
determined by the Secretary, which hardship 
exceptions, if allowed by the Secretary, shall in-
clude the hardship exceptions provided or estab-
lished by the Secretary of Housing and Urban 
Development, as appropriate, under subclauses 
(I) through (V) of section 3(a)(3)(B)(i) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437a(a)(3)(B)(i)). 
‘‘(B) MAXIMUM
RENT.—Notwithstanding 
any minimum monthly rent established pursu-
ant to subparagraph (A), the amount of month-
ly rent charged to any eligible household may 
not exceed 30 percent of the adjusted income of 
the eligible household. Such local director may 
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take such actions as may be necessary to verify 
tenant incomes for purposes of carrying out this 
subparagraph. 
‘‘(C) RENT ADJUSTMENTS.—The rents for 
eligible households may be increased or de-
creased only on an annual basis and only in ac-
cordance with standards incorporated in such 
agreement. The Secretary shall issue regula-
tions establishing such standards, which shall 
include standards for rents that are considered 
affordable for eligible households for the area in 
which a project is located and for establishing 
rents that conform to such standards. 
‘‘(8) LOWEST COST REQUIREMENT.—In deter-
mining the terms of a restructuring plan, and the 
type and amount of revitalization benefits under 
such plan to approve under this subsection for an el-
igible project, the Secretary shall, to the extent prac-
ticable, approve assistance that imposes the least 
cost to the Secretary while meeting the requirements 
of the long-term viability plan for the project. 
‘‘(c) HOMEOWNERSHIP OPPORTUNITIES.—The owner 
of an eligible project may, in conjunction with revitaliza-
tion of the project pursuant to this section, propose a sale 
to a tenant-based condominium or cooperative. Any such 
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proposal shall be subject to a notice to tenants under 
terms that the Secretary shall establish. 
‘‘(d) DETERMINATION OF INELIGIBILITY.— 
‘‘(1) PROCEDURE.—The Secretary may deter-
mine that a project owner is ineligible for participa-
tion in the revitalization program under this section 
in accordance with the standards under paragraph 
(2). 
‘‘(2) STANDARDS.— The Secretary may deter-
mine that a project owner is ineligible if— 
‘‘(A) the project owner has a history of 
poor management or maintenance of multi-
family housing properties; 
‘‘(B) the project owner is in default on a 
loan made available under the section 514 or 
515 housing program; 
‘‘(C) the Secretary is unable to enter into 
a long-term use agreement for the project that 
is the subject of the application with the project 
owner within a reasonable time; 
‘‘(D) the project owner is suspended or 
debarred from participating in Federal con-
tracts or programs; or 
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‘‘(E) the Secretary has other good cause 
for withholding from the project owner the ben-
efits made available under this section. 
‘‘(e) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) ELIGIBLE HOUSEHOLD.—The term ‘eligi-
ble household’ means a household that, under sec-
tion 515, is eligible to reside in a project funded 
with a loan made by the Secretary under such sec-
tion. 
‘‘(2) ELIGIBLE
PROJECT.—The term ‘eligible 
project’ means a housing project funded with a loan 
made at any time by the Secretary under section 
515, the principal obligation of which has not been 
fully repaid. 
‘‘(3) PROJECT
OWNER; OWNER.—The terms 
‘project owner’ and ‘owner’ mean, with respect to an 
eligible project, an individual or entity, or principals 
thereof that own, or plan to purchase, the project.’’. 
(b) PRIORITY FOR SECTION 515 FINANCING.—Sub-
section (j) of section 515 of the Housing Act of 1949 (42 
U.S.C. 1485(j)) is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘For’’; and 
(2) by adding at the end the following new 
paragraph: 
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‘‘(2) The Secretary may give priority, in enter-
ing into contracts under this section involving fi-
nancing for new construction of a project, for 
projects located in areas having a need for afford-
able low-income rental housing due to prepayment of 
loans made or insured under this section.’’. 
(c) PARTIAL REPEAL
OF PREPAYMENT RESTRIC-
TIONS; ADMINISTRATION OF PREPAYMENT REQUESTS.— 
Section 502 of the Housing Act of 1949 (42 U.S.C. 1472) 
is amended— 
(1) in subsection (c)— 
(A) by striking ‘‘or 515’’ each place such 
term appears; and 
(B) 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 section 544) any loan made under section 
515. The plan shall provide for administration 
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