I 
118TH CONGRESS 
2D SESSION H. R. 10421 
To establish a permanent rural housing preservation and revitalization 
program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 16, 2024 
Mr. CLEAVER introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To establish a permanent rural housing preservation and 
revitalization program, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Strategy and Invest-
ment in Rural Housing Preservation Act of 2023’’. 
SEC. 2. PERMANENT ESTABLISHMENT OF HOUSING PRES-
ERVATION AND REVITALIZATION PROGRAM. 
Title V of the Housing Act of 1949 (42 U.S.C. 1471 
et seq.) is amended by adding at the end the following 
new section: 
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‘‘SEC. 545. HOUSING PRESERVATION AND REVITALIZATION 
PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall carry 
out a program under this section for the preservation and 
revitalization of multifamily rental housing projects fi-
nanced under section 515 or both sections 514 and 516. 
‘‘(b) NOTICE OF MATURING LOANS.— 
‘‘(1) TO
OWNERS.—On an annual basis, the 
Secretary shall provide written notice to each owner 
of a property financed under section 515 or both 
sections 514 and 516 that will mature within the 4- 
year period beginning upon the provision of the no-
tice, setting forth the options and financial incen-
tives that are available to facilitate the extension of 
the loan term or the option to decouple a rental as-
sistance contract pursuant to subsection (f). 
‘‘(2) TO TENANTS.— 
‘‘(A) IN GENERAL.—For each property fi-
nanced under section 515 or both sections 514 
and 516, not later than the date that is 2 years 
before the date that the loan will mature, the 
Secretary shall provide written notice to each 
household residing in the property that informs 
them of the date of the loan maturity, the pos-
sible actions that may happen with respect to 
the property upon that maturity, and how to 
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protect their right to reside in federally assisted 
housing after that maturity. 
‘‘(B) LANGUAGE.—Notice under this para-
graph shall be provided in plain English and 
shall be translated to other languages in the 
case of any property located in an area in which 
a significant number of residents speak such 
other languages. 
‘‘(c) LOAN RESTRUCTURING.—Under the program 
under this section, in any circumstance in which the Sec-
retary proposes a restructuring to an owner or an owner 
proposes a restructuring to the Secretary, the Secretary 
may restructure such existing housing loans, as the Sec-
retary considers appropriate, for the purpose of ensuring 
that those projects have sufficient resources to preserve 
the projects to provide safe and affordable housing for low- 
income residents and farm laborers, by— 
‘‘(1) reducing or eliminating interest; 
‘‘(2) deferring loan payments; 
‘‘(3) subordinating, reducing, or reamortizing 
loan debt; and 
‘‘(4) providing other financial assistance, in-
cluding advances, payments, and incentives (includ-
ing the ability of owners to obtain reasonable re-
turns on investment) required by the Secretary. 
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‘‘(d) RENEWAL OF RENTAL ASSISTANCE.— 
‘‘(1) IN GENERAL.—When the Secretary pro-
poses to restructure a loan or agrees to the proposal 
of an owner to restructure a loan pursuant to sub-
section (c), the Secretary shall offer to renew the 
rental assistance contract under section 521(a)(2) 
for a 20-year term that is subject to annual appro-
priations, provided that the owner agrees to bring 
the property up to or maintain the property at such 
standards that will ensure maintenance of the prop-
erty as decent, safe, and sanitary housing for the 
full term of the rental assistance contract. 
‘‘(2) ADDITIONAL RENTAL ASSISTANCE.— 
‘‘(A) IN
GENERAL.—With respect to a 
project described in paragraph (1), if rental as-
sistance is not available for all households in 
the project for which the loan is being restruc-
tured pursuant to subsection (c), the Secretary 
may extend such additional rental assistance to 
unassisted households at that project as is nec-
essary to make the project safe and affordable 
to low-income households. 
‘‘(B) UNAVAILABLE
PROPERTY.—In the 
event that a property is not available to provide 
additional rental assistance to households under 
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subparagraph (A), the Secretary may offer a 
rural housing voucher to those households. 
‘‘(e) RESTRICTIVE USE AGREEMENTS.— 
‘‘(1) REQUIREMENT.—As part of the preserva-
tion and revitalization agreement for a project, the 
Secretary shall obtain a restrictive use agreement 
that obligates the owner to operate the project in ac-
cordance with this title. 
‘‘(2) TERM.— 
‘‘(A) NO EXTENSION OF RENTAL ASSIST-
ANCE CONTRACT.—Except when the Secretary 
enters into a 20-year extension of the rental as-
sistance contract for a project, the term of the 
restrictive use agreement for the project shall 
be consistent with the term of the restructured 
loan for the project. 
‘‘(B) EXTENSION OF RENTAL ASSISTANCE 
CONTRACT.—If the Secretary enters into a 20- 
year extension of the rental assistance contract 
for a project, the term of the restrictive use 
agreement for the project shall be for 20 years. 
‘‘(C) TERMINATION.—The Secretary may 
terminate the 20-year use restrictive use agree-
ment for a project before the end of the term 
of the agreement if the 20-year rental assist-
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ance contract for the project with the owner is 
terminated at any time for reasons outside the 
control of the owner. 
‘‘(f) DECOUPLING OF RENTAL ASSISTANCE.— 
‘‘(1) RENEWAL OF RENTAL ASSISTANCE CON-
TRACT.—If the Secretary determines that a matur-
ing loan for a project cannot reasonably be restruc-
tured in accordance with subsection (c) because it is 
not financially feasible or the owner does not agree 
with the proposed restructuring, and the project was 
operating with rental assistance under section 521, 
the Secretary may renew the rental assistance con-
tract, notwithstanding any provision of section 521, 
for a term, subject to annual appropriations, of 20 
years, provided that the owner enters into a restric-
tive use agreement. 
‘‘(2) ADDITIONAL RENTAL ASSISTANCE.—With 
respect to a project described in paragraph (1), if 
rental assistance is not available for all households 
in the project, the Secretary may extend such addi-
tional rental assistance to unassisted households at 
that project as is necessary to make the project safe 
and affordable to low-income households. 
‘‘(3) RENTS.—Any agreement to extend the 
term of the rental assistance contract under section 
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521 for a project shall obligate the owner to con-
tinue to maintain the project as decent, safe and 
sanitary housing and to operate the development in 
accordance with this title, except that rents shall be 
based on the lesser of— 
‘‘(A) the budget-based needs of the project; 
or 
‘‘(B) the operating cost adjustment factor 
as a payment standard as provided under sec-
tion 524 of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 
U.S.C. 1437 note). 
‘‘(4) CONDITIONS FOR APPROVAL.— 
‘‘(A) PLAN.—Before the approval of a 
rental assistance contract authorized under this 
section, the Secretary shall require the owner to 
submit to the Secretary a plan that identifies fi-
nancing sources and a timetable for renovations 
and improvements determined to be necessary 
by the Secretary to maintain and preserve the 
project. 
‘‘(B) AUTOMATIC
APPROVAL.—If a plan 
submitted under subparagraph (A) is not acted 
upon by the Secretary within 30 days of the 
submission, the rental assistance contract is 
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automatically approved for not more than a 1- 
year period. 
‘‘(g) MULTIFAMILY HOUSING TRANSFER TECHNICAL 
ASSISTANCE.—Under the program under this section, the 
Secretary may provide grants to qualified nonprofit orga-
nizations and public housing agencies to provide technical 
assistance, including financial and legal services, to bor-
rowers under loans under this title for multifamily housing 
to facilitate the acquisition of such multifamily housing 
properties in areas where the Secretary determines there 
is a risk of loss of affordable housing. 
‘‘(h) TRANSFER OF RENTAL ASSISTANCE.—After the 
loan or loans for a rental project originally financed under 
section 515 or both sections 514 and 516 have matured 
or have been prepaid and the owner has chosen not to 
restructure the loan pursuant to subsection (c)— 
‘‘(1) a tenant residing in the project shall have 
18 months before loan maturation or prepayment to 
transfer the rental assistance assigned to the unit of 
the tenant to another rental project originally fi-
nanced under section 515 or both sections 514 and 
516, and such tenants will have priority for admis-
sion over other applicants; and 
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‘‘(2) the owner of the initial project may rent 
the previous unit of the tenant to a new tenant with-
out income restrictions. 
‘‘(i) ADMINISTRATIVE EXPENSES.—Of any amounts 
made available for the program under this section for any 
fiscal year, the Secretary may use not more than 
$1,000,000 for administrative expenses for carrying out 
such program. 
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated for the program under 
this section $200,000,000 for each of fiscal years 2024 
through 2028. 
‘‘(k) RULEMAKING.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of the Strategy and In-
vestment in Rural Housing Preservation Act of 
2023, the Secretary shall— 
‘‘(A) publish an advance notice of proposed 
rulemaking; and 
‘‘(B) consult with appropriate stake-
holders. 
‘‘(2) INTERIM FINAL RULE.—Not later than 1 
year after the date of enactment of the Strategy and 
Investment in Rural Housing Preservation Act of 
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2023, the Secretary shall publish an interim final 
rule to carry out this section.’’. 
SEC. 3. ELIGIBILITY FOR RURAL HOUSING VOUCHERS. 
Section 542 of the Housing Act of 1949 (42 U.S.C. 
1490r) is amended by adding at the end the following: 
‘‘(c) ELIGIBILITY
OF HOUSEHOLDS
IN SECTIONS 
514, 515, AND 516 PROJECTS.— 
‘‘(1) IN GENERAL.—The Secretary may provide 
rural housing vouchers under this section for any 
low-income household (including those not receiving 
rental assistance) residing— 
‘‘(A) for a term longer than the remaining 
term of their lease in effect just prior to pre-
payment, in a property financed with a loan 
made or insured under section 514 or 515 that 
has— 
‘‘(i) been prepaid without restrictions 
imposed by the Secretary pursuant to sec-
tion 502(c)(5)(G)(ii)(I); 
‘‘(ii) been foreclosed; or 
‘‘(iii) matured after September 30, 
2005 and the property is not receiving 
rental assistance under section 545(f); or 
‘‘(B) in a property assisted under section 
514 or 516. 
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‘‘(2) PRIORITY.—The Secretary shall prioritize 
the provision of rental housing vouchers under this 
section for projects owned by nonprofit organizations 
and their affiliates or public agencies.’’. 
SEC. 4. AMOUNT OF VOUCHER ASSISTANCE. 
Notwithstanding any other provision of law, in the 
case of any rural housing voucher provided pursuant to 
section 542 of the Housing Act of 1949 (42 U.S.C. 
1490r), the amount of the monthly assistance payment for 
the household on whose behalf the assistance is provided 
shall be determined as provided in subsection (a) of such 
section 542. 
SEC. 5. RENTAL ASSISTANCE CONTRACT AUTHORITY. 
Section 521(d) of the Housing Act of 1949 (42 
U.S.C. 1490a(d)) is amended— 
(1) in paragraph (1)— 
(A) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), respec-
tively; 
(B) by inserting after subparagraph (A) 
the following: 
‘‘(B) upon request of an owner of a project 
financed under section 514 or 515 or an owner 
who has entered into a restrictive use agree-
ment under section 545(e), the Secretary is au-
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thorized to enter into a renewal of such agree-
ments for a period of 20 years or the term of 
the loan, whichever is shorter, subject to 
amounts made available in appropriations 
Acts;’’; 
(C) in subparagraph (C), as so redesig-
nated, by striking ‘‘subparagraph (A)’’ and in-
serting ‘‘subparagraphs (A) and (B)’’; and 
(D) in subparagraph (D), as so redesig-
nated, by striking ‘‘subparagraphs (A) and 
(B)’’ and inserting ‘‘subparagraphs (A), (B), 
and (C)’’; and 
(2) in paragraph (2)— 
(A) by striking ‘‘shall’’ and inserting 
‘‘may’’; and 
(B) by inserting ‘‘(other than the authority 
described in paragraph (1)(B))’’ after ‘‘this sec-
tion’’. 
SEC. 6. FUNDING FOR MULTIFAMILY TECHNICAL IMPROVE-
MENTS. 
(a) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary of Agri-
culture $50,000,000 for fiscal year 2024 for improving the 
technology of the Department of Agriculture used to proc-
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ess loans for multifamily housing and otherwise managing 
that housing. 
(b) TIMELINE.—The improvements required under 
subsection (a) shall be made within the 5-year period be-
ginning upon the appropriation of amounts under sub-
section (a), and those amounts shall remain available until 
the expiration of that 5-year period. 
SEC. 7. PLAN FOR PRESERVING AFFORDABILITY OF RENT-
AL PROJECTS. 
(a) PLAN.—Not later than 6 months after the date 
of enactment of this Act, the Secretary of Agriculture (in 
this section referred to as the ‘‘Secretary’’) shall submit 
to Congress a written plan for preserving the affordability 
for low-income families of rental projects for which loans 
were made under section 514 or 515 of the Housing Act 
of 1949 (42 U.S.C. 1484, 1485) and avoiding the displace-
ment of tenant households, which shall— 
(1) set forth specific performance goals and 
measures; 
(2) set forth the specific actions and mecha-
nisms by which those goals will be achieved; 
(3) set forth specific measurements by which 
progress towards achievement of each goal can be 
measured; 
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(4) provide for detailed reporting on outcomes; 
and 
(5) include any legislative recommendations to 
assist in achievement of the goals under the plan. 
(b) ADVISORY COMMITTEE.— 
(1) ESTABLISHMENT; 
PURPOSE.—The Sec-
retary shall establish an advisory committee (in this 
section referred to as the ‘‘advisory committee’’) to 
assist the Secretary in— 
(A) preserving properties assisted under 
section 514 or 515 of the Housing Act of 1949 
(42 U.S.C. 1484, 1485) through the multi-
family housing preservation and revitalization 
program under section 545 of such Act, as 
added by section 2 of this Act; and 
(B) implementing the plan required under 
subsection (a). 
(2) MEMBER.—The advisory committee shall 
consist of 16 members, appointed by the Secretary, 
as follows: 
(A) A State Director of Rural Develop-
ment for the Department of Agriculture. 
(B) The Administrator for Rural Housing 
Service of the Department of Agriculture. 
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(J) One representative of regulated finan-
cial institutions that finance affordable multi-
family rural rental housing developments. 
(K) Two representatives from nonprofit or-
ganizations representing farmworkers, including 
1 organization representing farmworker women. 
(3) MEETINGS.—The advisory committee shall 
meet not less often than once each calendar quarter. 
(4) FUNCTIONS.—In providing assistance to the 
Secretary to carry out the purpose of the advisory 
committee, the advisory committee shall carry out 
the following functions: 
(A) Assisting the Rural Housing Service of 
the Department of Agriculture to improve esti-
mates of the size, scope, and condition of rental 
housing portfolio of the Rural Housing Service, 
including the time frames for maturity of mort-
gages and costs for preserving the portfolio as 
affordable housing. 
(B) Reviewing policies and procedures of 
the Rural Housing Service regarding preserva-
tion of affordable rental housing financed under 
sections 514, 515, 516, and 538 of the Housing 
Act of 1949 (42 U.S.C. 1484, 1485, 1486, 
1490p–2), the Multifamily Preservation and 
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Revitalization Demonstration program, and the 
rental assistance program and making rec-
ommendations regarding improvements and 
modifications to those policies and procedures. 
(C) Providing ongoing review of Rural 
Housing Service program results. 
(D) Providing reports to Congress and the 
public on meetings, recommendations, and other 
findings of the advisory committee. 
(5) TRAVEL COSTS.—Any amounts made avail-
able for administrative costs of the Department of 
Agriculture may be used for costs of travel by mem-
bers of the advisory committee to meetings of the 
advisory committee. 
Æ 
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