IB 
Union Calendar No. 327 
109TH CONGRESS 
2D SESSION 
H. R. 5527 
[Report No. 109–572] 
To extend the authority of the Secretary of Housing and Urban Development 
to restructure mortgages and rental assistance for certain assisted multi-
family housing. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 6, 2006 
Mr. NEY (for himself, Ms. WATERS, Mr. GERLACH, and Mr. FRANK of Massa-
chusetts) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
JULY 17, 2006 
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] 
A BILL 
To extend the authority of the Secretary of Housing and 
Urban Development to restructure mortgages and rental 
assistance for certain assisted multifamily housing. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Aug 31 2005 
23:42 Jul 17, 2006
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5527.RH
H5527
hmoore on PROD1PC68 with HMBILLS
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Mark-to-Market Ex-
tension Act of 2006’’. 
SEC. 2. REAUTHORIZATION. 
Section 579 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f 
note) is amended— 
(1) in subsection (a)(1), by striking ‘‘October 1, 
2006’’ and inserting ‘‘October 1, 2011’’; and 
(2) in subsection (b), by striking ‘‘October 1, 
2006’’ and inserting ‘‘October 1, 2011’’. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Mark-to-Market Exten-
sion Act of 2006’’. 
SEC. 2. REAUTHORIZATION. 
Section 579 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f note) 
is amended— 
(1) in subsection (a)(1), by striking ‘‘October 1, 
2006’’ and inserting ‘‘October 1, 2011’’; and 
(2) in subsection (b), by striking ‘‘October 1, 
2006’’ and inserting ‘‘October 1, 2011’’. 
SEC. 3. EXCEPTION RENTS. 
Section 514(g)(2)(A) of the Multifamily Assisted Hous-
ing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
VerDate Aug 31 2005 
23:42 Jul 17, 2006
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6203
E:\BILLS\H5527.RH
H5527
hmoore on PROD1PC68 with HMBILLS
note) is amended by striking ‘‘five percent’’ and inserting 
‘‘nine percent’’. 
SEC. 4. 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 inserting before the period at the end 
the following: ‘‘: Provided, That if such purchaser acquires 
such project subsequent to the date of recordation of the af-
fordability agreement described in section 514(e)(6), (A) 
such purchaser must acquire such project on or before the 
later of (i) five years after the date of recordation of the 
affordability agreement and (ii) two years after the date 
of enactment of this title; and (B) the Secretary must have 
received, and determined acceptable, such purchaser’s appli-
cation for modification, assignment or forgiveness prior to 
such purchaser’s acquisition of the project’’. 
SEC. 5. 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 new para-
graph: 
‘‘(20) DISASTER-DAMAGED ELIGIBLE PROJECT.— 
The term ‘disaster-damaged eligible project’ means an 
eligible multifamily housing project— 
VerDate Aug 31 2005 
23:42 Jul 17, 2006
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6203
E:\BILLS\H5527.RH
H5527
hmoore on PROD1PC68 with HMBILLS
‘‘(A) that is located in a county that was 
declared a major disaster area on or after Janu-
ary 1, 2005, by the President pursuant to the 
Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq); 
‘‘(B) whose owner carried casualty and li-
ability insurance covering such project in 
amounts required by the Secretary; 
‘‘(C) that suffered damages not covered by 
such insurance that the Secretary determines are 
likely to exceed $5,000 per unit in connection 
with the natural disaster that was the subject of 
such designation; and 
‘‘(D) whose owner requests restructuring 
within two years following the date that such 
damages were incurred. 
Disaster-damaged eligible projects shall be eligible 
without regard to the relationship between rent level 
for the assisted units and comparable market rents.’’. 
SEC. 6. DISASTER-DAMAGED ELIGIBLE PROJECTS. 
(a) MARKET RENT DETERMINATIONS.—Subparagraph 
(B) of section 514(g)(1) of the Multifamily Assisted Hous-
ing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
note) is amended to read as follows: 
‘‘(B) if those rents cannot be determined— 
VerDate Aug 31 2005 
23:42 Jul 17, 2006
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6203
E:\BILLS\H5527.RH
H5527
hmoore on PROD1PC68 with HMBILLS
‘‘(i) with respect to a disaster-damaged 
eligible project, are equal to 100 percent of 
the fair market rents for the relevant market 
area (in effect at the time of such disaster); 
and 
‘‘(ii) with respect to other eligible mul-
tifamily housing projects, are equal to 90 
percent of the fair market rents for the rel-
evant market area.’’. 
(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 new paragraph: 
‘‘(3) PROPERTIES DAMAGED BY NATURAL DISAS-
TERS.—With respect to a disaster-damaged eligible 
project, the owner contribution toward rehabilitation 
needs shall be determined in accordance with para-
graph (2)(C).’’. 
VerDate Aug 31 2005 
23:42 Jul 17, 2006
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6203
E:\BILLS\H5527.RH
H5527
hmoore on PROD1PC68 with HMBILLS
Union Calendar No. 327 
109TH CONGRESS 
2D SESSION 
H. R. 5527 
[Report No. 109–572] 
A BILL 
To extend the authority of the Secretary of Hous-
ing and Urban Development to restructure mort-
gages and rental assistance for certain assisted 
multifamily housing. 
JULY 17, 2006 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Aug 31 2005 
23:42 Jul 17, 2006
Jkt 049200
PO 00000
Frm 00006
Fmt 6651
Sfmt 6651
E:\BILLS\H5527.RH
H5527
hmoore on PROD1PC68 with HMBILLS