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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(2) in paragraph (7), 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 
to comply with minimum safety and building stand-
ards and the cost of maintaining the affordability re-
strictions applicable under the original loan or grant 
for the property’’. 
SEC. 
6. 
MULTIFAMILY 
HOUSING 
MORTGAGE 
FORE-
CLOSURE. 
The Multifamily Mortgage Foreclosure Act of 1981 
is amended— 
(1) in section 362 (12 U.S.C. 3701)— 
(A) in paragraph (5), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (6), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(7) mortgages transferred by the Secretary to 
State and local governments should be foreclosed in 
the same manner as mortgages held by the Sec-
retary.’’; 
(2) in section 363 (12 U.S.C. 3702)— 
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(A) in paragraph (9), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (10), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(11) ‘‘State or local government transferee’’ 
means any state or unit of general local government, 
any public housing authority, or any State or local 
housing finance agency that has acquired mortgages 
pursuant to section 203 of the Housing and Commu-
nity Development Amendments of 1978 (12 U.S.C. 
1701z–11), section 204 of the Departments of Vet-
erans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 1997 
(12 U.S.C. 1715z–11a), or any other provision of 
law, that were previously held by the Secretary.’’; 
(3) in section 364 (12 U.S.C. 3703)— 
(A) by inserting ‘‘, or any State or local 
government transferee,’’ after ‘‘Secretary’’ the 
first and fourth places such term appears; and 
(B) by inserting ‘‘, or the State or local 
government transferee,’’ after ‘‘Secretary’’ the 
second, third, and fifth places such term ap-
pears; 
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(4) in section 365 (12 U.S.C. 3704)— 
(A) by inserting ‘‘, or any State or local 
government transferee,’’ after ‘‘Secretary’’ the 
first place such term appears; 
(B) by inserting ‘‘, or the State or local 
government transferee,’’ after ‘‘Secretary’’ each 
other place such term appears; and 
(C) by striking the last 3 sentences and in-
serting the following: ‘‘The entity designating 
the foreclosure commissioner, whether the Sec-
retary or any State or local government trans-
feree, shall be a guarantor of payment of any 
judgment against the foreclosure commissioner 
for damages based upon the commissioner’s 
failure properly to perform the commissioner’s 
duties. As between the entity designating the 
foreclosure commissioner, whether the Secretary 
or any State or local government transferee, 
and the mortgagor, the entity designating the 
foreclosure commissioner shall bear the risk of 
any financial default by the foreclosure commis-
sioner. In the event that the Secretary or any 
State or local government transferee makes any 
payment pursuant to the preceding two sen-
tences, the Secretary or any State or local gov-
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ernment transferee shall be fully subrogated to 
the rights satisfied by such payment.’’; 
(5) in section 366 (12 U.S.C. 3705)— 
(A) by inserting ‘‘, or any State or local 
government transferee,’’ after ‘‘Secretary’’ the 
first, third, fourth, and fifth place such term 
appears; and 
(B) by inserting ‘‘, or the State or local 
government transferee,’’ after ‘‘Secretary’’ the 
second and sixth places such term appears; 
(6) in section 367 (12 U.S.C. 3706)— 
(A) in subsection (a)— 
(i) in paragraph (1), by inserting ‘‘or 
the State or local government transferee,’’ 
after ‘‘Secretary,’’; and 
(ii) in paragraph (8), by inserting ‘‘, 
or the State or local government trans-
feree’’ after ‘‘Secretary’’; 
(B) in subsection (b)— 
(i) by inserting ‘‘, or any State or 
local government transferee,’’ after ‘‘Sec-
retary’’ the first and second places such 
term appears; and 
(ii) by inserting ‘‘, or the State or 
local government transferee,’’ after ‘‘Sec-
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retary’’ the third place such term appears; 
and 
(C) by adding at the end the following new 
subsection: 
‘‘(c) In any case in which a State or local government 
transferee is the purchaser of a multifamily project, the 
State or local government transferee shall manage and dis-
pose of such project to benefit those originally intended 
to be assisted under the prior program unless continued 
operation and disposition of the property under such pro-
gram is not feasible based on consideration of the costs 
of rehabilitating and operating the property after consid-
ering all available Federal, State, and local resources, in-
cluding rent adjustments under section 524 of the Multi-
family Assisted Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note).’’. 
(7) in section 368 (12 U.S.C. 3707)— 
(A) by inserting ‘‘, or any State or local 
government transferee,’’ after ‘‘Secretary’’ the 
first and third places such term appears; and 
(B) by inserting ‘‘, or the State of local 
government transferee,’’ after ‘‘Secretary’’ the 
second place such term appears; 
(8) in section 369A (12 U.S.C. 3709)— 
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(A) by inserting ‘‘, or any State or local 
government transferee,’’ after ‘‘Secretary’’ the 
second place such term appears; and 
(B) by inserting ‘‘, or the State or local 
government transferee,’’ after ‘‘Secretary’’ the 
first, third, and fourth places such term ap-
pears; 
(9) in section 369B (12 U.S.C. 3710)— 
(A) by inserting ‘‘, or the State of local 
government transferee,’’ after ‘‘Secretary’’ the 
first and second places such term appears; and 
(B) by inserting ‘‘, or any State or local 
government transferee,’’ after ‘‘Secretary’’ each 
other place such term appears; 
(10) in section 369E (12 U.S.C. 3713), by in-
serting ‘‘, or any State or local government trans-
feree,’’ after ‘‘Secretary’’ each place such term ap-
pears; and 
(11) 
in 
section 
369F(a)(1) 
(12 
U.S.C. 
3714(a)(1)), by inserting ‘‘, or any State or local 
government transferee,’’ before the semicolon at the 
end. 
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SEC. 7. BUILDING TRANSFERS: REQUIREMENTS FOR PUR-
CHASERS OF FHA-INSURED PROJECTS AND 
SECTION 8 PROJECTS. 
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Housing and Urban 
Development shall issue a proposed rulemaking, in accord-
ance with title 5, United States Code, that applies the par-
ticipation and certification requirements for potential pur-
chasers required under section 219 of Division G of the 
Consolidated Appropriations Act, 2004 (Public Law 108– 
199; 118 Stat. 397) and applicable to the sale of HUD- 
owned multifamily housing projects and the foreclosure 
sale of any multifamily housing securing a mortgage held 
by the Secretary also to the sale of any multifamily hous-
ing having a mortgage that is insured under the National 
Housing Act or for which assistance is provided under sec-
tion 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f) under a project-based assistance contract. 
SEC. 8. TRANSPARENCY REGARDING BUILDING INFORMA-
TION. 
(a) REQUIRED POSTING
ON WEBSITE.—The Sec-
retary of Housing and Urban Development shall make 
publicly available, by posting on a World Wide Web site 
of the Department, information regarding multifamily 
housing properties for which rental assistance is provided 
under section 8 of the United States Housing Act of 1937 
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(42 U.S.C. 1437f), for which other rental assistance or 
a subsidy is provided under a program administered by 
the Secretary, or for which a mortgage is insured under 
the National Housing Act (12 U.S.C. 1701 et seq.). 
(b) REQUIRED INFORMATION.—The information de-
scribed in subsection (a) regarding a property shall in-
clude— 
(1) information regarding the results of phys-
ical inspections of the property, including any real 
estate assessment center (REAC) scores for the 
property; 
(2) any notices, plans, and information relating 
to the property required under the Low-Income 
Housing Preservation and Resident Homeownership 
Act of 1990, including a notice of intent to prepay 
a mortgage under section 212, information under 
section 216, a second notice of intent under section 
216(d), a plan of action under section 217, and no-
tice of approval of a plan of action under section 
225; 
(3) any notice of request to terminate an insur-
ance contract under title II of the National Housing 
Act (12 U.S.C. 1707 et seq.) for a loan or mortgage 
on the property; 
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(4) any notice of request to prepay a loan or 
mortgage on the property insured under title II of 
the National Housing Act (12 U.S.C. 1707 et seq.); 
and 
(5) any notice under section 8(c)(8) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f(c)(8)) of proposed termination of an assist-
ance contract under such section for the property. 
(c) UPDATING.—The Secretary of Housing and 
Urban Development shall update the information made 
available pursuant to this section not less than quarterly. 
Æ 
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