I 
112TH CONGRESS 
2D SESSION 
H. R. 4218 
To preserve affordable housing opportunities for low-income families, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 20, 2012 
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To preserve affordable housing opportunities for low-income 
families, 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. SHORT TITLE. 
This Act may be cited as the ‘‘Stabilizing Affordable 
Housing for the Future Act’’. 
SEC. 2. INVESTMENT THROUGH UP-FRONT GRANTS FROM 
GENERAL INSURANCE FUND. 
(a) 1997 ACT.—Subsection (a) of section 204 of the 
Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations 
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Act, 1997 (12 U.S.C. 1715z–11a(a)) is amended by strik-
ing the last sentence. 
(b) 1978 ACT.—Paragraph (4) of section 203(f) of 
the Housing and Community Development Amendments 
of 1978 (12 U.S.C. 1701z–11(f)(4)) is amended by strik-
ing the last sentence. 
SEC. 3. PRESERVATION OF HUD-HELD AND HUD-OWNED 
BUILDINGS. 
Section 204(a) of the Departments of Veterans Af-
fairs and Housing and Urban Development, and Inde-
pendent Agencies Appropriations Act, 1997 (12 U.S.C. 
1715z–11a(a)) is amended— 
(1) by striking ‘‘During’’ and all that follows 
through ‘‘and thereafter, the provision of’’ and in-
serting ‘‘In managing and disposing of multifamily 
properties during any fiscal year, the Secretary may 
provide’’; and 
(2) by striking ‘‘notwithstanding any other pro-
vision’’ and inserting ‘‘consistent with other provi-
sions’’. 
SEC. 4. MAINTAINING AFFORDABILITY THROUGH CONTIN-
UED ASSISTANCE AND ESCROWING OF RENT-
AL ASSISTANCE. 
(a) REQUIREMENT TO MAINTAIN ASSISTANCE.— 
Subject to subsection (c) and notwithstanding any other 
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provision of law, in managing and disposing of any multi-
family property that is owned by, or subject to a mortgage 
held by, the Secretary of Housing and Urban Develop-
ment, the Secretary shall maintain payment of any rental 
assistance that is attached to any dwelling units in the 
property and provided under a contract for the property 
under section 8 of the United States Housing Act of 1937 
or under any other program administered by the Sec-
retary, as provided in this section. 
(b) ESCROW FOR PROPERTIES NOT MEETING HOUS-
ING QUALITY STANDARDS.—In the case of any transfer 
of a distressed multifamily property that does not comply 
with housing quality standards applicable to the property, 
the Secretary may not recapture any rental assistance de-
scribed in subsection (a) for the property, but shall hold 
any such assistance in escrow for the property during the 
period of noncompliance and, upon determining that the 
property complies with such standards make such assist-
ance available for the property. 
(c) PROJECTS NOT FEASIBLE FOR CONTINUED AS-
SISTANCE.—With respect to a multifamily property de-
scribed in subsection (a), to the extent the Secretary, in 
consultation with the tenants of the property, determines 
that the property is not feasible for continued rental as-
sistance payments under such section 8, or other pro-
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grams, based on consideration of the costs of rehabili-
tating and operating the property, after utilizing all avail-
able Federal, State, and local resources including rent ad-
justments under section 524 of the Multifamily Assisted 
Housing Reform and Affordability Act of 1997 (42 U.S.C. 
1437f note), the Secretary may, in consultation with the 
tenants of that property, contract with an owner or owners 
of other existing housing properties to make project-based 
rental assistance payments for such other properties or 
provide other rental assistance. 
SEC. 5. BUILDING ACQUISITION: VALUATION OF PHYS-
ICALLY DISTRESSED PROPERTIES SOLD BY 
HUD IN DISCOUNT SALES. 
Section 2001 of the Deficit Reduction Act of 2005 
(12 U.S.C. 1701z–11 note) is amended— 
(1) in paragraph (4), by striking ‘‘without tak-
ing into account any affordability requirements’’ and 
inserting the following: ‘‘as determined using indus-
try standard appraisal practices, including consider-
ation of the cost of repairs needed for the property 
subject to the loan to comply with minimum safety 
and building standards and the cost of maintaining 
the affordability restrictions applicable under the 
original loan or grant for the property’’; and 
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