I 
111TH CONGRESS 
2D SESSION 
H. R. 4868 
To prevent the loss of affordable housing dwelling units in the United States. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 17, 2010 
Mr. FRANK of Massachusetts (for himself, Ms. WATERS, Mr. GUTIERREZ, Ms. 
VELA´ZQUEZ, Mr. CAPUANO, Mr. HINOJOSA, Mr. BACA, Mr. LYNCH, Mr. 
AL GREEN of Texas, Ms. KILROY, Mr. HIMES, Ms. CLARKE, and Mr. 
DELAHUNT) introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committees on the 
Budget and Ways and Means, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To prevent the loss of affordable housing dwelling units 
in the United States. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Housing Preservation and Tenant Protection Act of 
2010’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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Sec. 1. Short title and table of contents. 
Sec. 2. Implementation. 
Sec. 3. Budget treatment. 
TITLE I—PRESERVATION OF FEDERALLY FINANCED AND STATE- 
FINANCED AFFORDABLE HOUSING AT RISK OF CONVERSION 
TO MARKET-RATE HOUSING 
Sec. 101. Conversion of rent supplement and RAP contracts to project-based 
rental assistance under section 8. 
Sec. 102. Preservation of properties with expiring use restrictions. 
Sec. 103. Enhanced voucher assistance and preservation project-based section 
8 assistance for State-financed affordable housing. 
Sec. 104. Project-based preservation assistance. 
Sec. 105. Preservation of State-financed affordable housing. 
Sec. 106. Preservation exchange program. 
Sec. 107. Federal first right of refusal. 
Sec. 108. Amendment to Low-Income Housing Preservation and Resident 
Homeownership Act of 1990. 
Sec. 109. Preservation of HUD-held and HUD-owned buildings. 
Sec. 110. Authority for HUD to assign flexible subsidy loans. 
Sec. 111. Use of existing section 8 funds to preserve and revitalize affordable 
housing. 
Sec. 112. Authority for Ginnie Mae to securitize FHA risk-sharing mortgages. 
TITLE II—RESTORATION OF HOUSING AT RISK OF LOSS DUE TO 
DETERIORATION 
Sec. 201. Authority to transfer rental assistance to other properties. 
Sec. 202. Building transfers: requirements for purchasers of FHA insured 
projects and section 8 projects. 
Sec. 203. Use of interest reduction payments for rehabilitation grants. 
Sec. 204. Clarification of budget-based rent increases for rehabilitated projects. 
Sec. 205. Interest reduction payments for section 236 projects experiencing a 
reduction of units. 
TITLE III—PROTECTION OF RESIDENTS 
Sec. 301. Tenant protection voucher to replace lost subsidized units on 1-for- 
1 basis. 
Sec. 302. Maintenance of housing. 
Sec. 303. Resident enforcement of public housing agency or project owner 
agreements with HUD. 
Sec. 304. Resident access to building information. 
TITLE IV—PRESERVATION OF TROUBLED PROJECTS FACING 
FORECLOSURE 
Sec. 401. Maintaining affordability through escrowing of rental assistance. 
Sec. 402. Multifamily housing mortgage foreclosure. 
Sec. 403. Building acquisition: valuation of physically distressed properties sold 
by HUD. 
Sec. 404. Investment through up-front grants from General Insurance Fund. 
Sec. 405. Maintaining project-based assistance for projects disposed of by 
HUD. 
Sec. 406. Correcting harm caused by late subsidy payments. 
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TITLE V—INCENTIVES UNDER MAHRA FOR OWNERS TO 
MAINTAIN HOUSING AFFORDABILITY 
Sec. 501. Extension of mark-to-market program. 
Sec. 502. Maintaining affordability in preservation project transactions. 
Sec. 503. Encouraging continued participation in assisted housing programs. 
Sec. 504. Prepayment of FHA mortgages on multifamily housing. 
Sec. 505. Period of eligibility for nonprofit debt relief. 
Sec. 506. Acquisition of restructured projects by nonprofit organizations. 
Sec. 507. Rent adjustments upon subsequent renewals of section 8 contracts. 
Sec. 508. Budget-based rent adjustments. 
Sec. 509. Independent appraisal requirement in cases of divergent rent studies. 
Sec. 510. Extension of housing assistance payment contract. 
Sec. 511. Otherwise eligible projects. 
Sec. 512. Exception rents. 
Sec. 513. Disaster-damaged eligible projects. 
Sec. 514. Funding for tenant and other participation and capacity building. 
TITLE VI—PRESERVATION DATABASE 
Sec. 601. Preservation database. 
TITLE VII—SECTION 202 SUPPORTIVE HOUSING FOR THE 
ELDERLY 
Sec. 701. Short title and table of contents. 
Subtitle A—New Construction Reforms 
Sec. 711. Project rental assistance. 
Sec. 712. Selection criteria. 
Sec. 713. Development cost limitations. 
Sec. 714. Owner deposits. 
Sec. 715. Definition of private nonprofit organization. 
Sec. 716. Preferences for homeless elderly. 
Sec. 717. Nonmetropolitan allocation. 
Subtitle B—Refinancing 
Sec. 721. Approval of prepayment of debt. 
Sec. 722. Sources of refinancing. 
Sec. 723. Use of unexpended amounts. 
Sec. 724. Use of project residual receipts. 
Sec. 725. Additional provisions. 
Subtitle C—Assisted Living Facilities 
Sec. 731. Definition of assisted living facility. 
Sec. 732. Monthly assistance payment under rental assistance. 
Subtitle D—National Senior Housing Clearinghouse 
Sec. 741. National senior housing clearinghouse. 
TITLE VIII—RURAL HOUSING PRESERVATION 
Sec. 801. Short title. 
Sec. 802. Preservation of multifamily housing. 
Sec. 803. Rural preservation and rural tenant protection vouchers. 
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Sec. 804. Tenant participation. 
Sec. 805. Priority for financing. 
Sec. 806. Conforming amendment. 
Sec. 807. Regulations. 
SEC. 2. IMPLEMENTATION. 
The Secretary of Housing and Urban Development 
and the Secretary of Agriculture, as applicable, shall by 
notice establish any additional requirements that may be 
necessary to immediately, except as specifically provided 
otherwise, carry out the provisions of this Act. Such notice 
shall take effect upon issuance. 
SEC. 3. BUDGET TREATMENT. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the Committee on the Budget of the 
House of Representatives, provided that such statement 
has been submitted prior to the vote on passage. 
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TITLE 
I—PRESERVATION 
OF 
FEDERALLY FINANCED AND 
STATE-FINANCED 
AFFORD-
ABLE HOUSING AT RISK OF 
CONVERSION 
TO 
MARKET- 
RATE HOUSING 
SEC. 101. CONVERSION OF RENT SUPPLEMENT AND RAP 
CONTRACTS TO PROJECT-BASED RENTAL AS-
SISTANCE UNDER SECTION 8. 
(a) CONVERSION.—Notwithstanding any other provi-
sion of law and subject to the availability of appropria-
tions, the Secretary of Housing and Urban Development 
shall, at the request of a project owner with a contract 
under section 101 of the Housing and Urban Development 
Act of 1965 (12 U.S.C. 1701s) or a contract under section 
236(f)(2) of the National Housing Act (12 U.S.C. 1715z– 
1(f)(2)), submitted during the 12-month period beginning 
on the date of the enactment of this Act, convert such 
contract to project-based assistance under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f) (in 
this section referred to as ‘‘section 8’’). 
(b) TERMS.—A contract for project-based rental as-
sistance under section 8 pursuant to a conversion under 
subsection (a) of this section shall— 
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(1) be subject to the availability of amounts 
provided in appropriations Act; and 
(2) have a term that is not shorter in duration 
than the remaining term of the contract that is con-
verted, pursuant to subsection (a) of this section, to 
project-based assistance under such section 8, plus 
an additional term of not less than 5 years, and up 
to 30 years at the request of the owner. 
(c) LOAN MANAGEMENT ASSISTANCE CONTRACTS.— 
After the initial year of a project-based rental assistance 
contract under section 8 for loan management assistance, 
the contract may, at the option of the project owner and 
subject to the conditions specified in section 524(a)(4)(D) 
of the Multifamily Assisted Housing Reform and Afford-
ability Act of 1997 (42 U.S.C. 1437f note), be converted 
to a renewal contract under such section 524, subject to 
the availability of appropriations, if the project owner 
agrees to a contract term that extends 10 years beyond 
the remaining term of the assistance contract. 
(d) USE RESTRICTIONS.—Notwithstanding any other 
provision of law, conversion of a contract pursuant to sub-
section (a) shall not diminish the affordability restrictions 
or number of assisted units applicable to the property that 
is subject to the contract converted. 
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(e) USE OF RECAPTURED AMOUNTS.—Any budget 
authority recaptured as a result of conversion of any con-
tract pursuant to subsection (a) shall be used by the Sec-
retary of Housing and Urban Development for making as-
sistance payments with respect to the initial 12-month pe-
riod of the contract for project-based rental assistance 
under section 8 resulting from such conversion. 
SEC. 102. PRESERVATION OF PROPERTIES WITH EXPIRING 
USE RESTRICTIONS. 
(a) FEDERAL ASSISTANCE AND EXTENSION OF AF-
FORDABILITY REQUIREMENTS.— 
(1) PROVISION OF ASSISTANCE.— 
(A) AUTHORITY.—The Secretary of Hous-
ing and Urban Development may use amounts 
made available under paragraph (5) to provide 
assistance under this section with respect to 
covered multifamily housing properties. 
(B) APPLICATIONS
AND
SELECTION
CRI-
TERIA.—The Secretary shall provide for owners 
of covered multifamily housing properties to 
submit applications for assistance under this 
section and shall establish criteria for selection 
of properties to receive assistance that shall 
take into consideration the need of a property 
for such assistance. 
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(2) REHABILITATION
ASSISTANCE.—The Sec-
retary may provide a grant or loan under this para-
graph to the owner or purchaser of the property, 
subject to the following requirements: 
(A) PURPOSE.—The assistance shall be 
provided for the purpose of rehabilitating the 
property for continued use as housing afford-
able to low- and moderate-income families. 
(B) ELIGIBLE
USE.—Amounts from the 
grant or loan may be used only for payment of 
nonrecurring maintenance and capital improve-
ments for the property, and associated trans-
action costs, under such terms and conditions 
as are determined by the Secretary. 
(C) PER
UNIT
AMOUNT
LIMITATIONS.— 
The amount from a grant or loan used with re-
spect to a dwelling unit in the property may not 
exceed the per unit dollar amount limitation as 
the Secretary shall establish for purposes of 
this paragraph for dwelling units of the applica-
ble size. 
(D) REQUIRED
EXTENSION
OF
AFFORD-
ABILITY
RESTRICTIONS.—The Secretary may 
provide assistance under this paragraph for a 
property only if the owner of the property en-
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ters into such binding commitments as the Sec-
retary may require, which shall be applicable to 
any subsequent owner, to ensure that the prop-
erty will be operated, for a period of not less 
than 30 years that begins on the termination 
date for the property, in accordance with all af-
fordability restrictions that are applicable to the 
property under the multifamily housing subsidy 
program under which the property is assisted 
before the termination date, with flexibility to 
recognize more significant restrictions accom-
panying other subsidies for the property. 
(3) ASSISTANCE
FOR
PURCHASE.—The Sec-
retary may provide a grant or loan under this para-
graph to an eligible organization under subpara-
graph (B) for acquisition of a covered multifamily 
housing property, subject to the following require-
ments: 
(A) PURPOSE.—The assistance shall be 
provided for the purpose of facilitating acquisi-
tion of properties by eligible organizations 
whose missions are to provide affordable hous-
ing to low- and moderate-income families. 
(B) ELIGIBLE ORGANIZATIONS.—A grant 
or loan under this paragraph may be made only 
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to a nonprofit organization, a for-profit organi-
zation, or a public housing agency (as such 
term is defined in section 3(b) of the United 
States Housing Act of 1937 (42 U.S.C. 
1437a(b)) that provides such assurances as the 
Secretary may require that the organization— 
(i) will acquire the property; and 
(ii) is capable of managing the prop-
erty and related facilities (either directly or 
through a contract) for the remaining use-
ful life of the property and related facili-
ties. 
(C) ELIGIBLE
USE.—Amounts from the 
grant or loan may be used only to cover any di-
rect costs (other than the purchase price), in-
cluding transaction costs, incurred by the eligi-
ble organization in purchasing and assuming re-
sponsibility for the property and related facili-
ties involved. 
(D) PER
UNIT
AMOUNT
LIMITATIONS.— 
The amount from a grant or loan used with re-
spect to a dwelling unit in the property may not 
exceed the per unit dollar amount limitation as 
the Secretary shall establish for purposes of 
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this paragraph for dwelling units of the applica-
ble size. 
(E) REQUIRED
EXTENSION
OF
AFFORD-
ABILITY
RESTRICTIONS.—The Secretary may 
provide assistance under this paragraph for a 
property only if the eligible organization that 
purchases the property enters into such binding 
commitments as the Secretary may require, 
which shall be applicable to any subsequent 
owner, to ensure that the property will be oper-
ated, for the remaining useful life of the prop-
erty, in accordance with all affordability restric-
tions that are applicable to the property under 
the multifamily housing subsidy program under 
which the property is assisted before the termi-
nation date. 
(4) LOW- AND
MODERATE-INCOME
AFFORD-
ABILITY ASSISTANCE.—The Secretary may provide 
new project-based assistance under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f) for currently unassisted units in covered mul-
tifamily housing properties occupied by tenants oth-
erwise eligible for such assistance, subject to the fol-
lowing requirements: 
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(A) PURPOSE.—The assistance shall be 
provided for the purpose of maintaining the af-
fordability of dwelling units in covered multi-
family housing properties not currently provided 
project-based rental assistance. 
(B) 
ELIGIBILITY.—Assistance 
may 
be 
made available for a property only if the prop-
erty— 
(i) is located in an area having a dem-
onstrated demand for affordable rental 
housing; or 
(ii) may be subject to rent level in-
creases as the result of mortgage maturity 
or termination or as the result of a recapi-
talization activity approved by the Sec-
retary or the Secretary of Agriculture. 
(C) FORM
AND
TERM.—The assistance 
shall be in the form of a housing assistance 
payment contract under such section 8 and 
shall be provided for such term as may be 
agreed to by the Secretary and the owner of the 
property. The form of assistance may include 
an amendment of an existing assistance con-
tract to cover additional units in the subject 
property. 
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(D) PREVENTION
OF
DUPLICATIVE
SUB-
SIDIES.—Assistance may not be provided for 
any dwelling unit in a property if such assist-
ance would duplicate other project- or tenant- 
based rental assistance of any kind for the 
dwelling unit from any source. 
(E) AMOUNT
AND
RENT
LEVELS.—The 
Secretary shall determine the amount of annual 
assistance provided for a property based on rent 
levels, for the dwelling units in the property 
that are subject to affordability restrictions pur-
suant to subparagraph (F), that are equal to 
the lesser of— 
(i) comparable market rents for the 
market area in which the property is lo-
cated for dwelling units of the applicable 
size; and 
(ii) 150 percent of the fair market 
rentals established under section 8(c) of 
the United States Housing Act of 1937 for 
the market area in which the property is 
located for dwelling units of the applicable 
size. 
(F) REQUIRED
EXTENSION
OF
AFFORD-
ABILITY
RESTRICTIONS.—The Secretary may 
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provide assistance under this paragraph for a 
property only if the owner of the property en-
ters into such binding commitments as the Sec-
retary may require, which shall be applicable to 
any subsequent owner, to ensure that the prop-
erty will be operated, for a period not shorter 
than the term of the assistance agreed to pur-
suant to subparagraph (C) or 10 years, which-
ever is longer, that begins on the termination 
date for the property, in accordance with all af-
fordability restrictions that are applicable to the 
property under the multifamily housing subsidy 
program under which the property is assisted 
before the termination date. 
(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated for assist-
ance under this subsection such sums as may be 
necessary. 
(b) ENHANCED VOUCHERS.— 
(1) QUALIFICATION; ELECTION TO REMAIN IN 
UNIT.—Section 8(t)(1) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(t)(1)(B)) is amend-
ed— 
(A) in the matter preceding subparagraph 
(A), by inserting ‘‘and shall not require that the 
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family requalify under the selection standards 
for a public housing agency in order to be eligi-
ble for such assistance’’ before the comma; and 
(B) by striking subparagraph (B) and in-
serting the following new subparagraph: 
‘‘(B)(i) the assisted family may elect to re-
main in the same project in which the family 
was residing on the date of the eligibility event 
for the project regardless of unit and family 
size standards normally used by the admin-
istering public housing agency (except that ten-
ants may be required to move to units of appro-
priate size if available on the premises), and the 
owner of the unit shall accept the enhanced 
voucher and terminate the tenancy only for se-
rious or repeated violation of the terms and 
conditions of the lease or for violation of appli-
cable law; and 
‘‘(ii) if, during any period the family 
makes such an election and continues to so re-
side, the rent for the dwelling unit of the family 
in such project exceeds the applicable payment 
standard established pursuant to subsection (o) 
for the unit, the amount of rental assistance 
provided on behalf of the family shall be deter-
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mined using a payment standard that is equal 
to the rent for the dwelling unit (as such rent 
may be increased from time-to-time), subject to 
paragraph (10)(A) of subsection (o) and any 
other reasonable limit prescribed by the Sec-
retary, except that a limit shall not be consid-
ered reasonable for purposes of this subpara-
graph if it adversely affects such assisted fami-
lies;’’. 
(2) PROVISION
TO
RESIDENTS
OF
ASSISTED 
MULTIFAMILY
PROJECTS
UPON
TERMINATION 
DATE.— 
(A) 
REQUIREMENT.—Upon 
the 
termi-
nation date for each assisted multifamily hous-
ing property, to the extent that amounts for as-
sistance under this paragraph are provided in 
advance in appropriation Acts, the Secretary of 
Housing and Urban Development shall make 
enhanced voucher assistance under section 8(t) 
of the United States Housing Act of 1937 (42 
U.S.C. 1437f(t)) available on behalf of each 
family described in subparagraph (B). The Sec-
retary shall make such assistance available no 
later than 60 days before the termination date 
on behalf of each family described in subpara-
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graph (B) that elects to move from the prop-
erty. 
(B) ELIGIBILITY.—A family described in 
this subparagraph is a family who— 
(i)(I) is a low-income family (as such 
term is defined in section 3(b) of the 
United States Housing Act of 1937 (42 
U.S.C. 1437a(b))); or 
(II) is a moderate-income family that 
is— 
(aa) an elderly family (as such 
term is used in section 3(b) of the 
United States Housing Act of 1937 
(42 U.S.C. 1437a(b))); 
(bb) a disabled family (as such 
term is used in section 3(b) of the 
United States Housing Act of 1937 
(42 U.S.C. 1437a(b))); or 
(cc) residing in a low-vacancy 
area (as determined by the Secretary); 
and 
(ii) is residing in— 
(I) a property that immediately 
before such termination date was an 
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assisted multifamily housing property; 
and 
(II) a dwelling unit that is not 
assisted after such termination date 
under section 8 of the United States 
Housing Act of 1937. 
(C) ELIGIBILITY EVENT.—Section 8(t)(2) 
of the United States Housing Act of 1937 (42 
U.S.C. 1437f(t)(2)) is amended by adding after 
the period at the end the following new sen-
tence: ‘‘Such term includes, with respect to an 
assisted multifamily housing property (as such 
term is defined in section 102(f) of the Housing 
Preservation and Tenant Protection Act of 
2010), the occurrence of the termination date 
(as such term is defined in such section 102(f)) 
for the property.’’. 
(3) REGULATIONS.—The Secretary of Housing 
and Urban Development shall issue regulations to 
implement the amendments made by this subsection 
not later than the expiration of the 6-month period 
beginning on the date of enactment of this Act, and 
such regulations shall require that the provisions of 
such amendments relating to termination of tenancy 
shall be contained in the lease. 
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(c) NOTIFICATION REQUIREMENT.— 
(1) TIMING.—An owner of an assisted multi-
family housing property, including any owner of a 
property with rent limitations that expire concur-
rently with the expiration of the term of the mort-
gage for the property, who intends to terminate or 
alter the affordability restrictions for the property 
on or after the termination date for the property 
shall, not less than 12 months before such termi-
nation date, provide written notice of such termi-
nation date to the Secretary of Housing and Urban 
Development, the chief executive officer of the State 
and the unit of general local government (as such 
term is defined in section 104 of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 
12704)) in which the property is located, and each 
tenant of the property. 
(2) CONTENTS.—The notice shall include— 
(A) a statement specifying any changes in 
the terms or applicability of the affordability re-
strictions for the property that the owner in-
tends to make on or after the termination date 
for the property; 
(B) a statement that, if the owner pro-
ceeds with such intended changes and the Con-
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gress makes funds available, the Department of 
Housing and Urban Development will provide 
tenant-based rental assistance to all eligible 
residents, enabling them to choose the place 
they wish to rent, which may include the right 
to remain in the dwelling unit in which they 
currently reside; and 
(C) a statement that, if the Congress 
makes funds available, the owner and the Sec-
retary may yet agree to renewal of assistance 
and affordability restrictions for the property, 
thereby obviating the need for such tenant- 
based rental assistance. 
(3) FAILURE
TO
PROVIDE
NOTICE.—If the 
owner does not provide the notice required under 
this subsection, notwithstanding any inapplicability 
of the affordability restrictions for the property, the 
owner may not evict the tenants or increase the ten-
ants’ rent payments until such time as the owner 
has provided the notice and the 12-month period be-
ginning upon the provision of such notice has 
elapsed. 
(4) OTHER
TERMS.—The Secretary may, to 
preserve affordable housing or protect tenants in 
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such properties, establish additional notice require-
ments. 
(5) SAVINGS PROVISION.—This subsection may 
not be construed to annul, alter, affect, or preempt 
any provision of the law of a State or political sub-
division thereof requiring notice regarding termi-
nation of assistance or affordability restrictions with 
respect to a multifamily housing project or to ex-
empt any person from complying with such a law. 
(d) PROJECTS WITH COMMON USE AGREEMENTS.— 
Notwithstanding any provision of the Emergency Low In-
come Housing Preservation Act of 1987 (12 U.S.C. 1715l 
note), if two covered multifamily housing properties are 
encumbered by use agreements that were recorded in land 
records on the same date pursuant to such Act and both 
such properties are subject to a single mortgage, both such 
use agreements shall be deemed to expire on the earlier 
of the expiration dates stated in such use agreements, but 
only if the owner of the properties agrees to maintain any 
project-based rental assistance for both such properties for 
the 30-year period beginning upon such common expira-
tion date. At the request of the owner, the Secretary shall 
establish contract rents for such project-based assistance 
at levels for comparable properties in the same market 
area. 
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(e) ANNUAL AND SEMIANNUAL REVIEWS.— 
(1) ANNUAL
REVIEW.—To ensure compliance 
with this section, the Secretary shall conduct an an-
nual review on actions taken under this section and 
the status of covered multifamily housing properties 
and submit a report to the Congress regarding each 
such annual review. 
(2) SEMIANNUAL REVIEW.—Not less than semi-
annually during the 2-year period beginning on the 
date of the enactment of this Act and not less than 
annually thereafter, the Secretary shall submit re-
ports to the Committee on Financial Services of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
stating, for such periods, the total number of as-
sisted multifamily housing properties for which noti-
fication has been provided under subsection (c) dur-
ing such period, the total number of covered multi-
family housing properties for which assistance has 
been provided under subsection (a), and the type or 
types of such assistance provided. 
(f) DEFINITIONS.—For purposes of this section: 
(1) AFFORDABILITY RESTRICTIONS.—The term 
‘‘affordability restrictions’’ means, with respect to a 
covered multifamily housing property, limits imposed 
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dcolon on DSK2BSOYB1PROD with BILLS
by regulation, regulatory agreement, or contract on 
tenant rents, rent contributions, or income eligibility. 
(2) ASSISTED
MULTIFAMILY
HOUSING
PROP-
ERTY.—The term ‘‘assisted multifamily housing 
property’’ means a multifamily housing project for 
which assistance is provided under a multifamily 
housing subsidy program. 
(3) 
COMPARABLE
PROPERTIES.—The 
term 
‘‘comparable properties’’ means, with respect to a 
covered multifamily housing property, properties in 
the same market area, where practicable, that— 
(A) are similar to the covered multifamily 
housing property as to neighborhood (including 
risk of crime), type of location, access, street 
appeal, age, property size, apartment mix, phys-
ical configuration, property and unit amenities, 
utilities, and other relevant characteristics; 
(B) are not receiving rental assistance of 
any kind from any source; and 
(C) are not subject to affordability restric-
tions of any kind. 
(4) COVERED
MULTIFAMILY
HOUSING
PROP-
ERTY.—The term ‘‘covered multifamily housing 
property’’ means an assisted multifamily housing 
property for which the termination date will occur 
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dcolon on DSK2BSOYB1PROD with BILLS
within the 10-year period beginning on the date of 
the enactment of this Act. 
(5) LOW-INCOME FAMILY.—The term ‘‘low-in-
come family’’ has the meaning given such term in 
section 3(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(b)). 
(6) MODERATE-INCOME
FAMILY.—The term 
‘‘moderate-income family’’ has the meaning given 
such term in section 229 of the Low-Income Hous-
ing Preservation and Resident Homeownership Act 
of 1992 (12 U.S.C. 4119). 
(7) MULTIFAMILY
HOUSING
SUBSIDY
PRO-
GRAM.—The term ‘‘multifamily housing subsidy pro-
gram’’ means— 
(A) the rent supplement program under 
section 101 of the Housing and Urban Develop-
ment Act of 1965 (12 U.S.C. 1701s); 
(B) the below-market interest rate mort-
gage 
insurance 
program 
under 
section 
221(d)(3) of the National Housing Act (12 
U.S.C. 1715l(d)(3)); 
(C) a contract under section 236(f)(2) of 
the National Housing Act (12 U.S.C. 1715z– 
1(f)(2)); 
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dcolon on DSK2BSOYB1PROD with BILLS
(D) the program for interest reduction 
payments under section 236 of the National 
Housing Act (12 U.S.C. 1715z–1) and any 
comparable State program providing for inter-
est reduction payments; 
(E) the program for supportive housing for 
the elderly under section 202 of the Housing 
Act of 1959 (12 U.S.C. 1701q), including as-
sistance under such section as in effect before 
the enactment of the Cranston-Gonzalez Na-
tional Affordable Housing Act; 
(F) the program for rural rental housing 
under section 515 of the Housing Act of 1949 
(42 U.S.C. 1485); and 
(G) any other mortgage insurance program 
provided under the National Housing Act for 
which the insured property is subject to budget- 
based rent restrictions. 
(8) NONPROFIT
ORGANIZATION.—The term 
‘‘nonprofit organization’’ has the meaning, with re-
spect to housing assisted under this section, given 
such term in section 202(k) of the Housing Act of 
1959 (12 U.S.C. 1701q(k)). 
(9) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
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dcolon on DSK2BSOYB1PROD with BILLS
(10) TERMINATION DATE.—The term ‘‘termi-
nation date’’ means, with respect to an assisted or 
a covered multifamily housing property, the date 
that— 
(A) the mortgage, loan, or capital advance 
for the property matures or expires and the af-
fordability restrictions applicable to the prop-
erty because of assistance for the property pur-
suant to a multifamily housing subsidy program 
terminate with respect to the property; 
(B) an assistance contract for the property 
that is not renewed, terminates, or expires; 
(C) in the case of a property that is not el-
igible low-income housing, as such term is de-
fined in section 229 of the Low-Income Hous-
ing Preservation and Resident Homeownership 
Act of 1990 (12 U.S.C. 4119), the mortgage or 
loan that covers the property is prepaid or an 
insurance contract that covers the property ter-
minates; or 
(D) use restrictions imposed with respect 
to the property pursuant to the Emergency Low 
Income Housing Preservation Act of 1987 ex-
pire. 
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dcolon on DSK2BSOYB1PROD with BILLS
(g) REGULATIONS.—The Secretary may issue any 
regulations necessary to carry out this section. 
SEC. 103. ENHANCED VOUCHER ASSISTANCE AND PRESER-
VATION PROJECT-BASED SECTION 8 ASSIST-
ANCE FOR STATE-FINANCED AFFORDABLE 
HOUSING. 
(a) ENHANCED VOUCHER ASSISTANCE.— 
(1) REQUIREMENT.—Upon the prepayment or 
maturity of a mortgage for which interest reduction 
payments have been made through a State housing 
program or financed by a State housing finance 
agency and subsidized by interest reduction pay-
ments made pursuant to section 236 of the National 
Housing Act (12 U.S.C. 1715z–1), to the extent 
that amounts for assistance under this subsection 
are provided in advance in appropriation Acts, the 
Secretary of Housing and Urban Development shall 
make enhanced voucher assistance under section 8(t) 
of the United States Housing Act of 1937(42 U.S.C. 
1437(t)) available on behalf of families described in 
paragraph (2). 
(2) ELIGIBLE FAMILIES.—A family described in 
this paragraph is a family that— 
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dcolon on DSK2BSOYB1PROD with BILLS
(A)(i) is a low-income family, as such term 
is defined in section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)); or 
(ii) is a moderate-income family that has 
an income that is not less than 80 percent, and 
not greater than 95 percent, of the median in-
come for the area, as determined by the Sec-
retary, that— 
(I) is an elderly family (as such term 
is used in section 3(b) of the United States 
Housing 
Act 
of 
1937 
(42 
U.S.C. 
1437a(b)); 
(II) is a disabled family (as such term 
is used in such section 3(b); or 
(III) resides in a low-vacancy area, as 
determined by the Secretary; and 
(B) on such prepayment or maturity date 
is residing in dwelling unit of the project that— 
(i) immediately before such prepay-
ment or maturity was subject to the mort-
gage for which interest reduction payments 
were made and subject to affordability re-
strictions; and 
(ii) is not assisted after such prepay-
ment or maturity date under section 8 of 
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dcolon on DSK2BSOYB1PROD with BILLS
the United States Housing Act of 1937, 
other than as provided under section 
8(t)(4) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(t)(4)). 
(3) ELIGIBILITY EVENT.—Paragraph (2) of sec-
tion 8(t) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(t)(2)), as amended by the pre-
ceding provisions of this Act, is further amended by 
adding after the period at the end the following new 
sentence: ‘‘Such term also includes, with respect to 
a multifamily family housing project with a mort-
gage for which interest reduction payments have 
been made through a State housing program or fi-
nanced by a State housing finance agency, the pre-
payment or maturity of such mortgage which results 
in eligible residents of such housing project being eli-
gible for enhanced voucher assistance under this 
subsection, pursuant to section 103(a) of the Hous-
ing Preservation and Tenant Protection Act of 
2010.’’. 
(b) PRESERVATION PROJECT-BASED SECTION 8 AS-
SISTANCE.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, in connection with the prepayment 
or maturity of a multifamily housing project mort-
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dcolon on DSK2BSOYB1PROD with BILLS
gage subsidized by interest reduction payments 
made through a State housing program or financed 
by a State housing finance agency and subsidized by 
interest reduction payments made pursuant to sec-
tion 236 of the National Housing Act (12 U.S.C. 
1715z–1), to prevent displacement of residents and 
to further preservation and affordability of such 
multifamily housing project, at the election of the 
project owner and in lieu of enhanced voucher assist-
ance under subsection (a) of this section or project- 
based voucher assistance under subsections (t)(4) 
and (o)(13)(N) of section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f), the Sec-
retary of Housing and Urban Development shall, 
pursuant to the authority under subsections (a) and 
(b) of such section 8, enter an annual contributions 
contract with the State housing finance agency to 
permit the State housing finance agency enter 
project-based assistance contract under this sub-
section covering all units in the project for which 
such enhanced or project-based voucher assistance 
would otherwise be provided. 
(2) CONTRACT TERMS.—Any project-based as-
sistance contract pursuant to this subsection shall— 
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dcolon on DSK2BSOYB1PROD with BILLS
project as eligible for purchase or transfer pur-
suant to the preservation exchange program, 
additional information about the property, as 
determined by the Secretary, and the identity of 
a contact person on behalf of the selling owner 
who may be contacted by a potential preserva-
tion purchaser; and 
(B) a potential preservation purchaser may 
make an offer to purchase the preservation 
project, in accordance with the requirements of 
this section, by providing the offer, in writing, 
to the selling owner and a copy of the offer to 
the Secretary. 
(2) DETERMINATION OF BONA FIDE OFFER.— 
During the 21-day period beginning upon receipt of 
a copy of an offer to purchase a preservation project 
made by a potential preservation purchaser pursuant 
to paragraph (1)(B) (in this subsection referred to 
as the ‘‘review period’’), the Secretary shall— 
(A) review the terms of the offer to pur-
chase and determine whether it is a bona fide 
preservation purchase offer meeting the require-
ments of subsection (e); and 
(B) provide notice of such determination to 
the parties. 
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