IB 
Union Calendar No. 357 
110TH CONGRESS 
2D SESSION 
H. R. 3965 
[Report No. 110–579] 
To extend the Mark-to-Market program of the Department of Housing and 
Urban Development, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 25, 2007 
Ms. WATERS (for herself, Mr. FRANK of Massachusetts, and Ms. PRYCE of 
Ohio) introduced the following bill; which was referred to the Committee 
on Financial Services 
APRIL 10, 2008 
Additional sponsors: Mr. BACA and Ms. CLARKE 
APRIL 10, 2008 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of the introduced bill, see copy of bill as introduced on October 25, 2007] 
A BILL 
To extend the Mark-to-Market program of the Department 
of Housing and Urban Development, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Mark-to-Market Extension and Enhancement Act of 
2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Purposes. 
Sec. 3. Definitions. 
Sec. 4. Extension of Mark-to-Market program. 
Sec. 5. Funding for tenant and other participation and capacity building. 
Sec. 6. Exception rents. 
Sec. 7. Otherwise eligible projects. 
Sec. 8. Disaster-damaged eligible projects. 
Sec. 9. Period of eligibility for nonprofit debt relief. 
Sec. 10. Acquisition of restructured projects by nonprofit organizations. 
Sec. 11. Mark-to-market for moderate rehabilitation projects. 
Sec. 12. Enhanced voucher assistance upon contract termination. 
Sec. 13. Correcting harm caused by late subsidy payments. 
Sec. 14. Effective date. 
SEC. 2. PURPOSES. 
The purpose of this Act is to— 
(1) continue the progress of the Multifamily As-
sisted Housing Reform and Affordability Act of 1997, 
as amended by the Mark-To-Market Extension Act of 
2001; 
(2) expand eligibility for Mark-to-Market re-
structuring so as to further the preservation of afford-
able housing in a cost-effective manner; and 
(3) provide for the preservation and rehabilita-
tion of projects damaged by Hurricanes Katrina, 
Rita, and Wilma, or by other natural disasters. 
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SEC. 3. DEFINITIONS. 
Section 512 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f note) 
is amended by adding at the end the following: 
‘‘(20) DISASTER-DAMAGED ELIGIBLE PROJECT.— 
‘‘(A) IN
GENERAL.—The term ‘disaster- 
damaged eligible project’ means an otherwise eli-
gible multifamily housing project— 
‘‘(i) that is located in a county that 
was designated a major disaster area on or 
after January 1, 2005, by the President 
pursuant to title IV of the Robert T. Staf-
ford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5121 et seq.); 
‘‘(ii) whose owner carried casualty and 
liability insurance covering such project in 
an amount required by the Secretary; 
‘‘(iii) that suffered damages not cov-
ered by such insurance that the Secretary 
determines is likely to exceed $5,000 per 
unit in connection with the natural disaster 
that was the subject of the designation de-
scribed in subparagraph (A); and 
‘‘(iv) whose owner requests restruc-
turing of the project not later than 2 years 
after the date that such damage occurred. 
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‘‘(B) RULE OF CONSTRUCTION.—A disaster- 
damaged eligible project shall be eligible for 
amounts under this Act without regard to the re-
lationship between rent levels for the assisted 
units in such project and comparable rents for 
the relevant market area.’’. 
SEC. 4. EXTENSION OF MARK-TO-MARKET PROGRAM. 
Section 579 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f note) 
is amended by striking ‘‘October 1, 2011’’ each place such 
term appears and inserting ‘‘October 1, 2012’’. 
SEC. 5. FUNDING FOR TENANT AND OTHER PARTICIPATION 
AND CAPACITY BUILDING. 
Paragraph (3) of section 514(f) of the Multifamily As-
sisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note) is amended— 
(1) in subparagraph (A)— 
(A) in the first sentence— 
(i) by striking ‘‘not more than’’ and 
inserting ‘‘not less than’’; 
(ii) by striking ‘‘of low-income housing 
for which project-based rental assistance is 
provided at below market rent levels and 
may not be renewed’’ and inserting the fol-
lowing: ‘‘and improvement of low-income 
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housing for which project-based rental as-
sistance, subsidized loans, or enhanced 
vouchers under section 8(t) are provided’’; 
and 
(iii) in the second parenthetical clause, 
by inserting before the closing parenthesis 
the following: ‘‘, and predevelopment assist-
ance to enable such transfers’’; and 
(B) by inserting after the period at the end 
the following: ‘‘For outreach and training of ten-
ants and technical assistance, the Secretary shall 
implement a grant program utilizing perform-
ance-based outcome measures for eligible costs in-
curred. Recipients providing capacity building 
or technical assistance services to tenant groups 
shall be qualified nonprofit Statewide, county-
wide, areawide or citywide organizations with 
demonstrated experience including at least a 
two-year recent track record of organizing and 
providing assistance to tenants, and independ-
ence from the owner, a prospective purchaser, or 
their managing agents. The Secretary may pro-
vide assistance and training to grantees in ad-
ministrative and fiscal management to ensure 
compliance with applicable Federal require-
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ments. The Secretary shall expedite the provision 
of funding for fiscal year 2008 by entering into 
new multi-year contracts with any prior grantee 
without adverse audit findings or whose adverse 
audit findings have been cleared, and by enter-
ing into an interagency agreement for not less 
than $1,000,000 with the Corporation for Na-
tional and Community Service or any other 
agency of the Federal Government, that is se-
lected by the Secretary and the Secretary deter-
mines is qualified to conduct such program, to 
conduct a tenant outreach and training program 
under the same or similar terms and conditions 
as was most recently conducted by the Corpora-
tion. The Secretary shall also make available 
flexible grants to qualified nonprofit organiza-
tions that do not own eligible multifamily prop-
erties, for tenant outreach in underserved areas, 
and to experienced national or regional non-
profit organizations to provide specialized train-
ing or support to grantees assisted under this 
section. Notwithstanding any other provision of 
law, funds authorized under this section for any 
fiscal year shall be available for obligation in 
subsequent fiscal years. The Secretary shall re-
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quire each recipient of amounts made available 
pursuant to this subparagraph to submit to the 
Secretary reports, on a quarterly basis, detailing 
the use of such funds and including such infor-
mation as the Secretary shall require.’’; and 
(2) by adding at the end the following new sub-
paragraphs: 
‘‘(D) PROHIBITIONS.—None of the funds 
made available under subparagraph (A) may be 
used for any political activities, political advo-
cacy, or lobbying (as such terms are defined by 
Circular A–122 of the Office of Management and 
Budget, entitled ‘Cost Principles for Non-Profit 
Organizations’), or for expenses for travel to en-
gage in political activities or preparation of or 
provision of advice on tax returns. 
‘‘(E) PROGRAM
COMPLIANCE
SYSTEMS.— 
Each recipient of amounts made available under 
subparagraph (A) shall develop systems to ensure 
compliance with the program and the require-
ments of this paragraph. 
‘‘(F) PENALTIES.—The Secretary may im-
pose penalties on any recipient of amounts made 
available under subparagraph (A) that fails to 
comply with any requirement under this para-
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graph or of the program established pursuant to 
this paragraph, which penalties may include— 
‘‘(i) ineligibility for further assistance 
from amounts made available under sub-
paragraph (A); and 
‘‘(ii) requiring the recipient to reim-
burse the Secretary for any amounts that 
were so misused.’’. 
SEC. 6. EXCEPTION RENTS. 
In the matter preceding clause (i) of section 
514(g)(2)(A) of the Multifamily Assisted Housing Reform 
and Affordability Act of 1997 (42 U.S.C. 1437f note) is 
amended— 
(1) by inserting ‘‘disaster-damaged eligible 
projects and’’ after ‘‘waive this limit for’’; and 
(2) by striking ‘‘five percent’’ and inserting ‘‘9 
percent’’. 
SEC. 7. OTHERWISE ELIGIBLE PROJECTS. 
Section 514 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f note) 
is amended by adding at the end the following: 
‘‘(i) OTHER ELIGIBLE PROJECTS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this subtitle, a project that meets the re-
quirements of subparagraphs (B) and (C) of section 
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‘‘(ii) pursue any other option with re-
spect to the renewal of such owner’s section 
8 contract pursuant to any applicable stat-
ute or regulation. 
‘‘(B) DOCUMENTATION.—If an owner of a 
project withdraws such owner’s request and pur-
sues other renewal options under this paragraph, 
such owner shall be entitled to submit docu-
mentation or other information to replace the 
documentation or other information used during 
processing for mortgage restructuring under this 
subtitle. 
‘‘(4) LIMITATION.—The Secretary may exercise 
the authority to treat projects as eligible multifamily 
housing projects pursuant to this subsection only to 
the extent that the number of units in such projects 
do not exceed 10 percent of all units for which mort-
gage restructuring pursuant to section 517 is com-
pleted.’’. 
SEC. 8. DISASTER-DAMAGED ELIGIBLE PROJECTS. 
(a) 
MARKET
RENT
DETERMINATIONS.—Section 
514(g)(1)(B) of the Multifamily Assisted Housing Reform 
and Affordability Act of 1997 (42 U.S.C. 1437f note) is 
amended by striking ‘‘determined, are equal’’ and inserting 
the following: ‘‘determined— 
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‘‘(i) with respect to a disaster-damaged 
eligible property, are equal to 100 percent of 
the fair market rents for the relevant market 
area (as such rents were in effect at the 
time of such disaster); and 
‘‘(ii) with respect to other eligible mul-
tifamily housing projects, are equal’’. 
(b) OWNER INVESTMENT.—Section 517(c) of the Multi-
family Assisted Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note) is amended by adding at the 
end the following: 
‘‘(3) PROPERTIES DAMAGED BY NATURAL DISAS-
TERS.—With respect to a disaster-damaged eligible 
property, the owner contribution toward rehabilita-
tion needs shall be determined in accordance with 
paragraph (2)(C).’’. 
SEC. 9. PERIOD OF ELIGIBILITY FOR NONPROFIT DEBT RE-
LIEF. 
Section 517(a)(5) of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
note) is amended by adding at the end the following: ‘‘If 
such purchaser acquires such project subsequent to the date 
of recordation of the affordability agreement described in 
section 514(e)(6)— 
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‘‘(A) such purchaser shall acquire such 
project on or before the later of— 
‘‘(i) 5 years after the date of recorda-
tion of the affordability agreement; or 
‘‘(ii) 2 years after the date of enact-
ment of the Mark-to-Market Extension and 
Enhancement Act of 2007; and 
‘‘(B) the Secretary shall have received, and 
determined acceptable, such purchaser’s applica-
tion for modification, assignment, or forgiveness 
prior to the acquisition of the project by such 
purchaser.’’. 
SEC. 10. ACQUISITION OF RESTRUCTURED PROJECTS BY 
NONPROFIT ORGANIZATIONS. 
Paragraph (5) of section 517(a) of the Multifamily As-
sisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437 note) is amended by inserting ‘‘, or the sole 
general partner of the limited partnership owning the 
project,’’ after ‘‘if the project’’. 
SEC. 11. MARK-TO-MARKET FOR MODERATE REHABILITA-
TION PROJECTS. 
(a) RENEWAL OF EXPIRING PROJECT-BASED SECTION 
8 MODERATE REHABILITATION CONTRACTS.—Section 524 
of the Multifamily Assisted Housing Reform and Afford-
ability Act of 1997 (42 U.S.C. 1437f note) is amended— 
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(1) in subsection (a)(4)(A)(iv)— 
(A) in subclause (I), by inserting ‘‘or’’ after 
the semicolon; 
(B) by striking subclause (II); and 
(C) by redesignating subclause (III) as sub-
clause (II); and 
(2) in subsection (b), by striking paragraph (3). 
(b) RENT ADJUSTMENTS FOR COVERED PROJECTS.— 
(1) RENT DETERMINATION AT INITIAL RENEWAL 
AFTER ENACTMENT.—Upon the first request by an 
owner of a covered housing project for renewal of 
project-based assistance pursuant to section 524 of the 
Multifamily Assisted Housing Reform and Afford-
ability Act of 1997 made after the date of the enact-
ment of this Act— 
(A) the rent levels at which assistance will 
be provided pursuant to such renewal shall be 
determined as if such renewal were the initial re-
newal of a contract for assistance under section 
524, as amended by subsection (a) of this section; 
and 
(B) solely for purposes of determining the 
rent levels at which assistance will be provided 
pursuant to such first renewal after the date of 
the enactment of this Act, in the case of a project 
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for which contract rents were reduced upon a 
prior renewal of an expiring contract pursuant 
to subsection (b)(3) of section 524, as in effect on 
the day before the date of the enactment of this 
Act, the contract rent levels in effect immediately 
prior to such first renewal after the date of the 
enactment of this Act shall be the considered to 
be the deemed rent levels described in paragraph 
(3)(C). 
(2) RENT
ADJUSTMENTS
AFTER
INITIAL
RE-
NEWAL AFTER ENACTMENT.—After the first renewal of 
a contract for assistance of a covered housing project 
after the date of the enactment of this Act in accord-
ance with paragraph (1) of this subsection, the Sec-
retary of Housing and Urban Development shall ad-
just rents in accordance with subsection (c) of section 
524. 
(3) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply: 
(A) The term ‘‘section 524’’ means section 
524 of the Multifamily Assisted Housing Reform 
and Affordability Act of 1997 (42 U.S.C. 1437f 
note). 
(B) The term ‘‘covered housing project’’ 
means a project that receives project-based assist-
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ance under section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f) which was re-
newed prior to the date of the enactment of this 
Act pursuant to subsection (b)(3) of section 524, 
as in effect on the day before the date of the en-
actment of this Act. 
(C) The term ‘‘deemed rent levels’’ means 
the contract rent levels in effect immediately 
prior to the first renewal of assistance pursuant 
to subsection (b)(3) of section 524, as in effect on 
the day before the date of the enactment of this 
Act, upon which contract rent levels were re-
duced, as adjusted by the applicable operating 
cost adjustment factor established by the Sec-
retary at the date of such renewal and at the 
date of any subsequent renewal pursuant to such 
subsection (b)(3). 
(D) The term ‘‘Secretary’’ means the Sec-
retary of Housing and Urban Development or 
any public housing agency approved by the Sec-
retary to serve as the contracting party in lieu 
of the Secretary. 
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simple interest on the amount of such monthly pay-
ment, from the due date until the date of payment, 
at a rate determined by the Secretary of Treasury in 
accordance with section 12 of the Contract Disputes 
Act of 1978 (41 U.S.C. 611). Interest payments under 
this paragraph shall be made from amounts made 
available for management and administration of the 
Department of Housing and Urban Development.’’. 
SEC. 14. EFFECTIVE DATE. 
This Act, and the amendments made by this Act, shall 
take effect on the earlier of— 
(1) the date of enactment of this Act; or 
(2) September 30, 2008. 
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Union Calendar No. 357 
110TH CONGRESS 
2D SESSION 
H. R. 3965 
[Report No. 110–579] 
A BILL 
To extend the Mark-to-Market program of the De-
partment of Housing and Urban Development, 
and for other purposes. 
APRIL 10, 2008 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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