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‘‘(1) SHORT-TERM LOANS.—Provide short-term
loans to facilitate the sale of multifamily housing
projects to nonprofit organizations or to public agen-
cies if—
‘‘(A) authority for such loans is provided
in advance in an appropriations Act;
‘‘(B) such loans are for a term of not more
than 5 years;
‘‘(C) the Secretary is presented with satis-
factory documentation, evidencing a commit-
ment of permanent financing to replace such
short-term loan, from a lender who meets
standards set forth by the Secretary; and
‘‘(D) the terms of such loans are consist-
ent with prevailing practices in the marketplace
or the provision of such loans results in no cost
to the Government, as defined in section 502 of
the Congressional Budget Act.
‘‘(2) TENANT-BASED ASSISTANCE.—In connec-
tion with projects referred to in subsection (e), make
available tenant-based assistance under section 8 of
the United States Housing Act of 1937 to very low-
income families (as defined in section 3(b)(2) of the
United States Housing Act of 1937) that do not
otherwise qualify for project-based assistance.
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‘‘(3) ALTERNATIVE USES.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law, and subject to notice to
and comment from existing tenants, allow not
more than—
‘‘(i) 5 percent of the total number of
units in multifamily housing projects that
are disposed of by the Secretary during
any 1-year period to be made available for
uses other than rental or cooperative uses,
including low-income homeownership op-
portunities, or in any particular project,
community space, office space for tenant
or housing-related service providers or se-
curity programs, or small business uses, if
such uses benefit the tenants of the
project; and
‘‘(ii) 5 percent of the total number of
units in multifamily housing projects that
are disposed of by the Secretary during
any 1-year period to be used in any man-
ner, if the Secretary and the unit of gen-
eral local government or area-wide govern-
ing body determine that such use will fur-
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ther fair housing, community development,
or neighborhood revitalization goals.
‘‘(B) DISPLACEMENT
PROTECTION.—The
Secretary shall make available tenant-based
rental assistance under section 8 of the United
States Housing Act of 1937 to any tenant dis-
placed as a result of actions taken by the Sec-
retary pursuant to subparagraph (A), and the
Secretary shall take such actions as the Sec-
retary determines necessary to ensure the suc-
cessful use of any tenant-based assistance.
‘‘(g) AUTHORIZATION OF USE OR RENT RESTRIC-
TIONS IN UNSUBSIDIZED PROJECTS.—In carrying out the
goals specified in subsection (a), the Secretary may re-
quire certain units in unsubsidized projects to contain use
or rent restrictions providing that such units will be avail-
able to and affordable by very low-income persons for the
remaining useful life of the property, as defined by the
Secretary.
‘‘(h) CONTRACT REQUIREMENTS.—
‘‘(1) CONTRACT TERM.—
‘‘(A) IN GENERAL.—Contracts for project-
based rental assistance under section 8 of the
United States Housing Act of 1937 provided
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pursuant to this section shall be for a term of
not more than 15 years; and
‘‘(B) CONTRACT TERM OF LESS THAN 15
YEARS.—Notwithstanding subparagraph (A), to
the extent that units receive project-based as-
sistance for a contract term of less than 15
years, the Secretary shall require that rents
charged to tenants for such units not exceed
the amount payable for rent under section 3(a)
of the United States Housing Act of 1937 for
a period of at least 15 years.
‘‘(2) CONTRACT RENT.—
‘‘(A) IN
GENERAL.—The Secretary shall
set contract rents for section 8 project-based
rental contracts issued under this section at lev-
els that, in conjunction with other resources
available to the purchaser, provide for the nec-
essary costs of rehabilitation of such project
and do not exceed the percentage of the existing
housing fair market rents for the area (as de-
termined by the Secretary under section 8(c) of
the United States Housing Act of 1937) as the
Secretary may prescribe.
‘‘(B) UP-FRONT GRANTS AND LOANS.—If
such an approach is determined to be more
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cost-effective, the Secretary may utilize the
budget authority provided for project-based sec-
tion 8 contracts issued under this section to—
‘‘(i) provide project-based section 8
rental assistance; and
‘‘(ii)(I) provide up-front grants for the
necessary cost of rehabilitation; or
‘‘(II) pay for any cost to the Govern-
ment, as defined in section 502 of the Con-
gressional Budget Act, for loans made pur-
suant to subsection (f)(1).
‘‘(i) DISPOSITION PLAN.—
‘‘(1) IN GENERAL.—Prior to the sale of a mul-
tifamily housing project that is owned by the Sec-
retary, the Secretary shall develop a disposition plan
for the project that specifies the minimum terms
and conditions of the Secretary for disposition of the
project, the initial sales price that is acceptable to
the Secretary, and the assistance that the Secretary
plans to make available to a prospective purchaser
in accordance with this section. The initial sales
price shall reflect the intended use of the property
after sale.
‘‘(2) COMMUNITY
AND
TENANT
INPUT
INTO
DISPOSITION PLANS AND SALES.—
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‘‘(A) IN GENERAL.—In carrying out this
section, the Secretary shall develop procedures
to obtain appropriate and timely input into dis-
position plans from officials of the unit of gen-
eral local government affected, the community
in which the project is situated, and the tenants
of the project.
‘‘(B) TENANT ORGANIZATIONS.—The Secretary
shall develop procedures to facilitate, where feasible
and appropriate, the sale of multifamily housing
projects to existing tenant organizations with dem-
onstrated capacity or to public or nonprofit entities
which represent or are affiliated with existing tenant
organizations.
‘‘(C) TECHNICAL ASSISTANCE.—
‘‘(i) USE OF FUNDS.—To carry out
the procedures developed under subpara-
graphs (A) and (B), the Secretary is au-
thorized to provide technical assistance, di-
rectly or indirectly, and to use amounts ap-
propriated for technical assistance under
the Emergency Low Income Housing Pres-
ervation Act of 1987, the Low-Income
Housing Preservation and Resident Home-
ownership Act of 1990, subtitle B of title
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IV of the Cranston-Gonzalez National Af-
fordable Housing Act, or under this section
for the provision of technical assistance
under this section.
‘‘(ii) SOURCE OF FUNDS.—Recipients
of technical assistance funding under the
Emergency Low Income Housing Preserva-
tion Act of 1987, the Low-Income Housing
Preservation and Resident Homeownership
Act of 1990, subtitle B of title IV of the
Cranston-Gonzalez 
National 
Affordable
Housing Act, or under this section shall be
permitted to provide technical assistance to
the extent of such funding under any of
such programs or under this section, not-
withstanding the source of funding.
‘‘(j) RIGHT OF FIRST REFUSAL.—
‘‘(1) PROCEDURE.—
‘‘(A) NOTIFICATION
BY
SECRETARY
OF
THE ACQUISITION OF TITLE.—Not later than
30 days after acquiring title to a project, the
Secretary shall notify the unit of general local
government and the State agency or agencies
designated by the Governor of the acquisition of
such title.
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‘‘(B) EXPRESSION
OF
INTEREST.—Not
later than 45 days after receiving notification
from the Secretary under subparagraph (A),
the unit of general local government or des-
ignated State agency may submit to the Sec-
retary a preliminary expression of interest in
the project. The Secretary may take such ac-
tions as may be necessary to require the unit of
general local government or designated State
agency to substantiate such interest.
‘‘(C) TIMELY
EXPRESSION
OF
INTER-
EST.—If the unit of general local government or
designated State agency has expressed interest
in the project before the expiration of the 45-
day period referred to in subparagraph (B), and
has substantiated such interest if requested, the
Secretary, upon approval of a disposition plan
for a project, shall notify the unit of general
local government and designated State agency
of the terms and conditions of the disposition
plan and give the unit of general local govern-
ment or designated State agency not more than
90 days after the date of such notification to
make an offer to purchase the project.
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‘‘(D) NO TIMELY EXPRESSION OF INTER-
EST.—If the unit of general local government or
designated State agency does not express inter-
est before the expiration of the 45-day period
referred to in subparagraph (B), or does not
substantiate an expressed interest if requested,
the Secretary, upon approval of a disposition
plan, may offer the project for sale to any inter-
ested person or entity.
‘‘(2) ACCEPTANCE
OF
OFFERS.—Where the
Secretary has given the unit of general local govern-
ment or designated State agency 90 days to make
an offer to purchase the project, the Secretary shall
accept an offer that complies with the terms and
conditions of the disposition plan. The Secretary
may accept an offer that does not comply with the
terms and conditions of the disposition plan if the
Secretary determines that the offer will further the
goals specified in subsection (a) by actions that in-
clude extension of the duration of low-income afford-
ability restrictions or otherwise restructuring the
transaction in a manner that enhances the long-term
affordability for low-income persons. The Secretary
shall, in particular, have discretion to reduce the ini-
tial sales price in exchange for the extension of low-
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income affordability restrictions beyond the period of
assistance contemplated by the attachment of assist-
ance pursuant to subsection (e). If the Secretary and
the unit of general local government or designated
State agency cannot reach agreement within 90
days, the Secretary may offer the project for sale to
the general public.
‘‘(3) PURCHASE BY UNIT OF GENERAL LOCAL
GOVERNMENT
OR
DESIGNATED
STATE
AGENCY.—
Notwithstanding any other provision of law, a unit
of general local government (including a public hous-
ing agency) or designated State agency may pur-
chase a subsidized or formerly subsidized project in
accordance with this subsection.
‘‘(4) APPLICABILITY.—This subsection shall
apply to projects that are acquired on or after the
effective date of this subsection. With respect to
projects acquired before such effective date, the Sec-
retary may apply—
‘‘(A) the requirements of paragraphs (2)
and (3) of section 203(e) as such paragraphs
existed immediately before the effective date of
this subsection; or
‘‘(B) the requirements of paragraphs (1)
and (2) of this subsection, if the Secretary gives
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the unit of general local government or des-
ignated State agency—
‘‘(i) 45 days to express interest in the
project; and
‘‘(ii) if the unit of general local gov-
ernment or designated State agency ex-
presses interest in the project before the
expiration of the 45-day period, and sub-
stantiates such interest if requested, 90
days from the date of notification of the
terms and conditions of the disposition
plan to make an offer to purchase the
project.
‘‘(k) DISPLACEMENT OF TENANTS AND RELOCATION
ASSISTANCE.—
‘‘(1) IN GENERAL.—Whenever tenants will be
displaced as a result of the disposition of, or repairs
to, a multifamily housing project that is owned by
the Secretary (or for which the Secretary is mortga-
gee in possession), the Secretary shall identify ten-
ants who will be displaced, and shall notify all such
tenants of their pending displacement and of any re-
location assistance which may be available. In the
case of a multifamily housing project that is not
owned by the Secretary (and for which the Secretary
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is not mortgagee in possession), the Secretary shall
require the owner of the project to carry out the re-
quirements of this paragraph.
‘‘(2) RIGHTS
OF
DISPLACED
TENANTS.—The
Secretary shall assure for any such tenant (who con-
tinues to meet applicable qualification standards)
the right—
‘‘(A) to return, whenever possible, to a re-
paired unit;
‘‘(B) to occupy a unit in another multifam-
ily housing project owned by the Secretary;
‘‘(C) to obtain housing assistance under
the United States Housing Act of 1937; or
‘‘(D) to receive any other available reloca-
tion assistance as the Secretary determines to
be appropriate.
‘‘(l) MORTGAGE AND PROJECT SALES.—
‘‘(1) IN GENERAL.—The Secretary may not ap-
prove the sale of any loan or mortgage held by the
Secretary (including any loan or mortgage owned by
the Government National Mortgage Association) on
any subsidized project or formerly subsidized
project, unless such sale is made as part of a trans-
action that will ensure that such project will con-
tinue to operate at least until the maturity date of
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tial notice, taking into account any public comments re-
ceived.
Subtitle B—Merger of the
Certificate and Voucher Programs
SEC. 6101. MERGER OF CERTIFICATE AND VOUCHER PRO-
GRAMS.
The United States Housing Act of 1937 is amended
as provided in subsections (a) through (d) of this section.
(a) MERGER OF CERTIFICATE AND VOUCHER PRO-
GRAMS.—Section 8(o) is amended to read as follows:
‘‘(o) CERTIFICATE PROGRAM.—(1) The Secretary
may provide assistance for tenant-based assistance using
a payment standard in accordance with this subsection.
The payment standard shall be used to determine the
monthly assistance which may be paid for any family, as
provided in paragraph (2) of this subsection, and shall not
exceed the fair market rental established under subsection
(c). However, the payment standard for a designated part
of the market area may exceed the fair market rental by
not more than 20 percent where the Secretary determines
that higher market rents in a designated part of the mar-
ket area justify a higher payment standard. The Secretary
may require an agency to submit proposed payment stand-
ards to the Secretary for approval.