188 
‘‘SEC. 545. PRESERVATION OF MULTIFAMILY HOUSING AND 
PROTECTION OF TENANTS. 
‘‘(a) PRESERVATION
PROGRAM.—The Secretary 
shall, subject to the availability of amounts appropriated, 
carry out a preservation program in accordance with this 
section to provide financial incentives and other assistance 
to owners of eligible projects through long-term use agree-
ments entered into between the project owners and the 
Secretary. 
‘‘(b) APPLICATIONS TO PARTICIPATE.— 
‘‘(1) IN GENERAL.—The Secretary shall accept 
applications from owners of eligible projects to par-
ticipate in the preservation program under this sec-
tion. 
‘‘(2) PRIORITY.—In selecting among applica-
tions of eligible projects to participate in the preser-
vation program, the Secretary may give priority to 
applications for such projects that are located on 
tribal trust lands or other Indian areas, in colonias 
(as such term is defined in section 916(e) of the 
Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 5306 note), or in other small, poor, low- 
income communities. 
‘‘(c) LONG-TERM VIABILITY PLAN.— 
‘‘(1) REQUIREMENT.—The Secretary shall pre-
pare and approve a long-term viability plan under 
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this subsection with respect to each eligible project 
for which the owner requests to participate. 
‘‘(2) CONTENTS.—Each long-term viability plan 
for an eligible project shall include the following in-
formation: 
‘‘(A) PHYSICAL
NEEDS
ASSESSMENT.—A 
physical needs assessment of the project that 
identifies and projects, for the following 30 
years— 
‘‘(i) all necessary repairs, improve-
ments, maintenance, and management 
standards for the project, and when they 
will be made, in order to meet the require-
ments of this title; and 
‘‘(ii) the costs associated with the 
items referred to clause (i). 
‘‘(B) FINANCIAL PLAN.—A financial plan 
for the project that— 
‘‘(i) reviews the financial stability of 
the project; 
‘‘(ii) includes the loan restructuring 
elements, rent adjustments, management 
and operational efficiencies, and other fi-
nancial adjustments to the project that are 
necessary to cover operating expenses for 
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the project and maintain an adequate fi-
nancial reserve for the future maintenance 
and capital needs of the project; 
‘‘(iii) provides the project owner with 
a long-term rate of return on equity of the 
project owner, as determined by the Sec-
retary, commensurate to comparable rural 
multifamily housing projects for which a 
tax credit is provided under section 42 of 
the Internal Revenue Code of 1986 (26 
U.S.C. 42), and provides that any return 
in excess of such rate of return shall be 
made available to the Secretary only for 
use under section 514, 515, or 516; 
‘‘(iv) meets the physical needs for the 
project determined under the physical 
needs assessment; 
‘‘(v) ensures that rents available 
under the plan are affordable to eligible 
households in accordance with subsection 
(f); and 
‘‘(vi) addresses any costs associated 
with any temporary tenant displacement 
resulting from renovations or rehabilitation 
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undertaken as a result of participation of 
the project in the preservation program. 
‘‘(3) DEVELOPMENT THROUGH PARTICIPATING 
ADMINISTRATIVE ENTITIES.—The Secretary may de-
velop long-term viability plans through the use of 
third-party participating administrative entities, who 
may be a private contractor, a State housing finance 
agency, or a nonprofit organization. 
‘‘(4) PRESERVATION DETERMINATION.—Based 
on the long-term viability plan for an eligible project, 
the Secretary shall determine whether to offer the 
project owner a financial restructuring plan under 
subsection (d) and the financial incentives to be in-
cluded in any such plan offered. 
‘‘(5) FINAL REVIEW AND COMMENT.—Before a 
determination is made under subparagraph (D) with 
respect to any long-term viability plan prepared by 
the Secretary, the Secretary shall— 
‘‘(A) provide the project owner an oppor-
tunity to review the plan and discuss the plan 
with the Secretary or its agent; 
‘‘(B) make available to the tenants of the 
project a copy of such plan and provide a period 
of not less than 30 days for tenants to submit 
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comments regarding the plan to the Secretary; 
and 
‘‘(C) respond in writing to such comments. 
‘‘(6) FEES.—The Secretary may charge the 
project owner a fee for preparation of the long-term 
viability plan. 
‘‘(7) PAYMENT OF FEES.—If a long-term viabil-
ity for a project is approved, the payment of such 
fee may be incorporated into a project owner’s finan-
cial restructuring plan for the project provided by 
the Secretary pursuant to subsection (d). 
‘‘(d) FINANCIAL RESTRUCTURING PLAN; PRESERVA-
TION INCENTIVES.—Based on the long-term viability plan 
for an eligible project, the Secretary may offer a project 
owner a financial restructuring plan for the project. Such 
a plan may include one or more of the following preserva-
tion incentives: 
‘‘(1) Reduction or elimination of interest on the 
loan or loans for the project made under section 
514, 515, or 516. 
‘‘(2) Partial or full deferral of payments due 
under such loan or loans. 
‘‘(3) Forgiveness of such loan or loans. 
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‘‘(4) Subordination of such loan or loans, sub-
ject to such terms and conditions as the Secretary 
shall determine. 
‘‘(5) Reamortization of loan payments under 
such loan or loans over extended terms. 
‘‘(6) A grant from the Secretary for the project. 
‘‘(7) Payment of project costs associated with 
developing the long-term viability plan. 
‘‘(8) Opportunity for project owners to obtain 
further investment equity from third parties. 
‘‘(9) A direct loan or guarantee of a loan for 
the project, with a subsidized interest rate without 
regard to the value of the project. 
‘‘(e) LONG-TERM USE AGREEMENT.— 
‘‘(1) IN GENERAL.—If the owner of an eligible 
project agrees to the terms of a financial restruc-
turing plan for the project providing preservation 
benefits under subsection (d), in exchange for such 
benefits, the Secretary and the project owner shall 
enter into a long-term use agreement under this sub-
section for the project. 
‘‘(2) AGREEMENT.—A long-term use agreement 
for an eligible project shall include— 
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‘‘(F) a representation and warranty by the 
owner to provide safe, healthy, clean buildings 
pursuant to the Secretary’s guidelines; 
‘‘(G) provisions providing for rural preser-
vation voucher assistance under section 542(c) 
for low-income households residing in the 
project who are eligible for such vouchers; and 
‘‘(H) such other terms as the Secretary de-
termines are necessary to implement the pur-
poses of this section. 
‘‘(f) RENTS
UNDER
LONG-TERM
USE
AGREE-
MENT.—Rents for any eligible households residing in 
dwelling units in any preserved project shall comply with 
the following requirements: 
‘‘(1) MAXIMUM HOUSEHOLD CONTRIBUTION TO 
RENT
AND
UTILITIES.—The maximum household 
contribution to monthly rent and utilities for any eli-
gible household may not exceed 30 percent of the 
adjusted income of the eligible household. 
‘‘(2) RENT ADJUSTMENTS.—The rents for eligi-
ble projects may be increased or decreased only on 
an annual basis and only in accordance with stand-
ards incorporated in such agreement. 
‘‘(3) LOWEST COST REQUIREMENT.—In deter-
mining the terms of a restructuring plan, and the 
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type and amount of preservation benefits under such 
plan to approve under this section for an eligible 
project, the Secretary shall, to the extent prac-
ticable, approve assistance that imposes the least 
cost to the Secretary while meeting the requirements 
of the long-term viability plan for the project. 
‘‘(g) EARNED
INCOME
DISREGARD
FOR
RESI-
DENTS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, the amount of the contribution to-
ward rent for a dwelling unit payable, by any house-
hold described in paragraph (3), for occupancy in a 
project funded with a loan under section 514, 515, 
or 516 may not be increased as a result of the in-
creased income due to employment during the 12- 
month period beginning on the date on which the 
employment is commenced. 
‘‘(2) PHASE-IN
OF
RENT
INCREASES.—Upon 
the expiration of the 12-month period referred to in 
paragraph (1), the contribution toward rent payable 
by a household described in paragraph (3) may be 
increased due to the continued employment of the 
household 
member 
described 
in 
subparagraph 
(3)(B), except that during the 12-month period be-
ginning upon such expiration the amount of the in-
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crease may not be greater than 50 percent of the 
amount of the total increase in contribution toward 
rent that would be applicable but for this paragraph. 
‘‘(3) ELIGIBLE HOUSEHOLD.—A household de-
scribed in this paragraph is a household that— 
‘‘(A)(i) is an eligible household who resides 
in an eligible project; or 
‘‘(ii) is provided rural preservation voucher 
assistance pursuant to section 542(c); and 
‘‘(B)(i) whose income increases as a result 
of employment of a member of the household 
who was previously unemployed for 1 or more 
years; 
‘‘(ii) whose earned income increases during 
the participation of a household member in any 
family self-sufficiency or other job training pro-
gram; or 
‘‘(iii) who is or was, within 6 months, as-
sisted under any State program for temporary 
assistance for needy families funded under part 
A of title IV of the Social Security Act (42 
U.S.C. 601 et seq.) and whose earned income 
increases. 
‘‘(h) INELIGIBILITY.— 
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‘‘(1) PROCEDURE FOR DETERMINATION.—The 
Secretary may determine that a project owner is in-
eligible for participation in the preservation program 
under this section in accordance with the standards 
under paragraph (2). 
‘‘(2) STANDARDS.—The Secretary may deter-
mine that a project owner is ineligible if— 
‘‘(A) the project owner has a history of 
poor management or maintenance of multi-
family housing properties; 
‘‘(B) the project owner is in default on a 
loan made available under the section 514, 515, 
or 516 housing program; 
‘‘(C) the Secretary is unable to enter into 
a long-term use agreement for the project that 
is the subject of the application with the project 
owner within a reasonable time; 
‘‘(D) the project owner is suspended or 
debarred from participating in Federal con-
tracts or programs; or 
‘‘(E) the Secretary has other good cause 
for withholding from the project owner the ben-
efits made available under this section. 
‘‘(i) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
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‘‘(1) ELIGIBLE HOUSEHOLD.—The term ‘eligi-
ble household’ means a household that, under sec-
tion 514, 515, or 516, is eligible to reside in a 
project funded with a loan made by the Secretary 
under such section. 
‘‘(2) ELIGIBLE
PROJECT.—The term ‘eligible 
project’ means a housing project funded with a loan 
made at any time by the Secretary under section 
514, 515, or 516, the principal obligation of which 
has not been fully repaid. 
‘‘(3) PROJECT
OWNER; OWNER.—The terms 
‘project owner’ and ‘owner’ mean, with respect to an 
eligible project, an individual or entity, or principals 
thereof that own, or plan to purchase, the project. 
‘‘(4) PRESERVED
PROJECT.—The term ‘pre-
served project’ means an eligible project for which 
the Secretary and owner have entered into agree-
ment on a financial restructuring plan for the 
project and into a long-term use agreement for the 
project, under this section. 
‘‘(j) ANNUAL REPORT.—The Secretary shall submit 
a report to the Congress annually regarding the compli-
ance of owners of eligible projects participating in the 
preservation program under this section with the require-
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ments of such program, which shall identify and describe 
any significant failures to comply. 
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated for each of fiscal years 
2011 through 2015 such sums as may be necessary to 
carry out the preservation program under this section.’’. 
SEC. 803. RURAL PRESERVATION AND RURAL TENANT PRO-
TECTION VOUCHERS. 
Section 542 of the Housing Act of 1949 (42 U.S.C. 
1490r) is amended by adding at the end the following new 
subsections: 
‘‘(c) RURAL PRESERVATION ASSISTANCE.—In the 
case of a housing project subject to a loan made under 
section 514, 515, or 516 that is a preserved project (as 
such term is defined in section 545(i)), the Secretary shall, 
to the extent that amounts for assistance under this sub-
section are provided in advance in appropriation Acts, 
make available to each eligible household (as such term 
is defined in section 545(i)) that is not already assisted 
under the rental assistance program under section 521 or 
the program for rental assistance under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f), 
and is residing in the project upon the date that a long- 
term use agreement is entered into pursuant to section 
545(e) between the project owner and the Secretary, 
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voucher assistance under this subsection or rental assist-
ance under section 521 upon such date, as follows: 
‘‘(1) The amount of assistance provided shall be 
sufficient to allow such household to remain in the 
project after it is preserved. 
‘‘(2) The percentage of adjusted income paid by 
the eligible household for rent and utilities for the 
assisted dwelling shall not exceed 30 percent of ad-
justed income of the eligible household. 
‘‘(3) The assistance shall be available to the eli-
gible household only during the period in which the 
eligible household resides in the preserved project 
and the long-term use agreement remains in effect. 
‘‘(4) Upon termination of the participation of 
the eligible household in the assistance program, the 
assistance shall remain attached to the preserved 
project and shall be available for use by another eli-
gible household residing in the preserved project. 
‘‘(d) RURAL TENANT PROTECTION VOUCHERS FOR 
PREPAYMENTS AND FORECLOSURES.— 
‘‘(1) IN GENERAL.—In the case of a housing 
project subject to a loan made under section 514, 
515, or 516 that is prepaid or foreclosed upon, the 
Secretary shall, to the extent that amounts for as-
sistance under this subsection are provided in ad-
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vance in appropriation Acts, make available to each 
eligible household (as such term is defined in section 
545(i)) that is not assisted under the rental assist-
ance program under section 521 or the program for 
rental assistance under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f), and 
is residing in a dwelling unit in the project upon the 
date that the Secretary approves the prepayment or 
submits notice of foreclosure to the project owner, as 
applicable, voucher assistance upon such date, as fol-
lows: 
‘‘(A) RELOCATION
VOUCHERS.—In the 
case of any such eligible household who must 
relocate from a project for which the loan is 
being prepaid or foreclosed upon, voucher as-
sistance under this subsection shall be subject 
to the terms of section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 
1437(o)), except that— 
‘‘(i) the percentage of adjusted income 
paid by the eligible household for rent and 
utilities for the assisted dwelling unit shall 
not at any time exceed 30 percent of the 
adjusted income of the eligible household; 
and 
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‘‘(ii) a voucher provided pursuant to 
this subparagraph shall be subject to the 
terms of section 8(r) of such Act (relating 
to portability), except that if an eligible 
household uses the voucher to move to a 
community other than the community in 
which the project from which the family re-
located pursuant to such prepayment or 
foreclosure is located, upon termination of 
the participation of such eligible family in 
the voucher program, the voucher shall be 
returned for use in the community in 
which such project is located. 
‘‘(B) ENHANCED VOUCHERS.—In the case 
of any such eligible household who remains in 
a project for which the loan is prepaid or fore-
closed upon, voucher assistance under this sub-
section shall be subject to the terms of section 
8(t) of the United State Housing Act of 1937 
(42 U.S.C. 1437f(t)), except that— 
‘‘(i) the percentage of adjusted income 
paid by the eligible household for rent and 
utilities for the assisted dwelling unit shall 
not at any time exceed 30 percent of the 
adjusted income of the eligible household; 
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‘‘(ii) the owner of the project may not 
refuse to lease, to an eligible household for 
whom voucher assistance under this sub-
paragraph is made available, any available 
appropriately sized rental dwelling unit in 
the project; 
‘‘(iii) voucher assistance under this 
subparagraph may be used only for dwell-
ing units in housing that is decent, safe, 
and sanitary; and 
‘‘(iv) upon termination of participa-
tion of such eligible family in the enhanced 
voucher program, the voucher shall convert 
to a relocation voucher under subpara-
graph (A) of this paragraph, and shall be 
available with respect to such project only 
to provide assistance in accordance with 
the provisions of such subparagraph. 
‘‘(e) ADMINISTRATION.—The Secretary may contract 
with a public housing agency or a private or nonprofit or-
ganization to administer vouchers authorized under sub-
sections (c) and (d). 
‘‘(f) RENEWAL.—Vouchers under subsections (c) and 
(d) shall be renewed annually, subject to the availability 
of appropriations for such renewal. 
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‘‘(g) USE OF SAVINGS.—Notwithstanding any other 
provision of law, any amounts made available for voucher 
assistance under subsections (c) and (d) that remain un-
used because of increases in the incomes of household as-
sisted under such vouchers shall be available to the Sec-
retary for eligible activities under this Act. 
‘‘(h) APPLICABILITY OF SECTION 8 PROGRAM.—Ex-
cept as specifically provided otherwise in this section, to 
the maximum extent practicable, the Secretary shall ad-
minister voucher assistance under subsections (c) and (d) 
in accordance with, but not subject to, regulations and ad-
ministrative guidance for housing vouchers administered 
by the Secretary of Housing and Urban Development 
under section 8(o) of such Act. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated for voucher assistance under 
subsections (c) and (d) such sums as may be necessary 
for each of fiscal years 2011 through 2015.’’. 
SEC. 804. TENANT PARTICIPATION. 
Title V of the Housing Act of 1949 is amended by 
inserting after section 517 (42 U.S.C. 1487) the following 
new section: 
‘‘SEC. 518. TENANT PARTICIPATION. 
‘‘The Secretary shall extend to tenants in multifamily 
housing projects financed under sections 514, 515, 516 
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and 538 all of the rights that are specified in section 202 
of the Housing and Community Development Amend-
ments of 1978 (12 U.S.C. 1715z–1b) with respect to ten-
ants of multifamily housing projects (as such term is de-
fined in subsection (a) of such section).’’. 
SEC. 805. PRIORITY FOR FINANCING. 
Subsection (j) of section 515 of the Housing Act of 
1949 (42 U.S.C. 1485(j)) is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘For’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) The Secretary may give priority, in entering into 
contracts under this section involving financing for new 
construction of a project, for projects located in eligible 
rural areas having a need for affordable low-income rental 
housing due to prepayment of loans made or insured 
under this section.’’. 
SEC. 806. CONFORMING AMENDMENT. 
Section 537(b)(1) of the Housing Act of 1949 (42 
U.S.C. 1490p–1(b)(1)) is amended by inserting before the 
semicolon the following: ‘‘and to administer the preserva-
tion program under section 545’’. 
SEC. 807. REGULATIONS. 
The Secretary of Agriculture shall issue proposed 
regulations to carry out the amendments made by this title 
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not later than the expiration of the 90-day period begin-
ning upon the date of the enactment of this Act, and shall 
issue final regulations to carry out the amendments made 
by this title not later than the expiration of the 180-day 
period beginning upon such date of enactment. 
Æ 
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