H. R. 3061—46
SEC. 603. EFFECTIVE DATE.
Except as provided in sections 616(a)(2), 633(b), and 634(b),
this title and the amendments made by this title shall take effect
or are deemed to have taken effect, as appropriate, on the earlier
of—
(1) the date of the enactment of this title; or
(2) September 30, 2001.
Subtitle A—Multifamily Housing Mortgage
and Assistance Restructuring and Sec-
tion 8 Contract Renewal
SEC. 611. DEFINITION.
Section 512 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 new paragraph:
‘‘(19) OFFICE.—The term ‘Office’ means the Office of Multi-
family Housing Assistance Restructuring established under sec-
tion 571.’’.
SEC. 612. MARK-TO-MARKET PROGRAM AMENDMENTS.
(a) FUNDING
FOR TENANT
AND NONPROFIT PARTICIPATION.—
Section 514(f)(3)(A) of the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended—
(1) by striking ‘‘Secretary may provide not more than
$10,000,000 annually in funding’’ and inserting ‘‘Secretary shall
make available not more than $10,000,000 annually in funding,
which amount shall be in addition to any amounts made avail-
able under this subparagraph and carried over from previous
years,’’; and
(2) by striking ‘‘entities), and for tenant services,’’ and
inserting ‘‘entities), for tenant services, and for tenant groups,
nonprofit organizations, and public entities described in section
517(a)(5),’’.
(b) EXCEPTION RENTS.—Section 514(g)(2)(A) of the Multifamily
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) is amended by striking ‘‘restructured mortgages in
any fiscal year’’ and inserting ‘‘portfolio restructuring agreements’’.
(c) NOTICE
TO DISPLACED TENANTS.—Section 516(d) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997
(42 U.S.C. 1437f note) is amended by striking ‘‘Subject to’’ and
inserting the following:
‘‘(1) NOTICE TO CERTAIN RESIDENTS.—The Office shall notify
any tenant that is residing in a project or receiving assistance
under section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f) at the time of rejection under this section,
of such rejection, except that the Office may delegate the
responsibility to provide notice under this paragraph to the
participating administrative entity.
‘‘(2) ASSISTANCE AND MOVING EXPENSES.—Subject to’’.
(d) RESTRUCTURING PLANS
FOR TRANSFERS
OF PREPAYMENT
PROJECTS.—The Multifamily Assisted Housing Reform and Afford-
ability Act of 1997 (42 U.S.C. 1437f note) is amended—
(1) in section 524(e), by adding at the end the following
new paragraph:
H. R. 3061—47
‘‘(3) MORTGAGE RESTRUCTURING AND RENTAL ASSISTANCE
SUFFICIENCY
PLANS.—Notwithstanding paragraph (1), the
owner of the project may request, and the Secretary may con-
sider, mortgage restructuring and rental assistance sufficiency
plans to facilitate sales or transfers of properties under this
subtitle, subject to an approved plan of action under the Emer-
gency Low Income Housing Preservation Act of 1987 (12 U.S.C.
1715l note) or the Low-Income Housing Preservation and Resi-
dent Homeownership Act of 1990 (12 U.S.C. 4101 et seq.),
which plans shall result in a sale or transfer of those prop-
erties.’’; and
(2) in the last sentence of section 512(2), by inserting
‘‘, but does include a project described in section 524(e)(3)’’
after ‘‘section 524(e)’’.
(e) ADDITION OF SIGNIFICANT FEATURES.—Section 517 of the
Multifamily Assisted Housing Reform and Affordability Act of 1997
(42 U.S.C. 1437f note) is amended—
(1) by striking subsection (c) (except that the striking of
such subsection may not be construed to have any effect on
the provisions of law amended by such subsection, as such
subsection was in effect before the date of the enactment of
this Act);
(2) in subsection (b)—
(A) in paragraph (7), by striking ‘‘(7)’’ and inserting
‘‘(1)’’; and
(B) by adding at the end the following new paragraph:
‘‘(2) ADDITION OF SIGNIFICANT FEATURES.—
‘‘(A) AUTHORITY.—An approved mortgage restructuring
and rental assistance sufficiency plan may require the
improvement of the project by the addition of significant
features that are not necessary for rehabilitation to the
standard provided under paragraph (1), such as air condi-
tioning, an elevator, and additional community space. The
Secretary shall establish guidelines regarding the inclusion
of requirements regarding such additional significant fea-
tures under such plans.
‘‘(B) FUNDING.—Significant features added pursuant to
an approved mortgage restructuring and rental assistance
sufficiency plan may be paid from the funding sources
specified in the first sentence of paragraph (1)(A).
‘‘(C) LIMITATION ON OWNER CONTRIBUTION.—An owner
of a project may not be required to contribute from non-
project resources, toward the cost of any additional signifi-
cant features required pursuant to this paragraph, more
than 25 percent of the amount of any assistance received
for the inclusion of such features.
‘‘(D) APPLICABILITY.—This paragraph shall apply to all
eligible multifamily housing projects, except projects for
which the Secretary and the project owner executed a
mortgage restructuring and rental assistance sufficiency
plan on or before the date of the enactment of the Mark-
to-Market Extension Act of 2001.’’; and
(3) by inserting after paragraph (6) of subsection (b) the
following:
‘‘(c) REHABILITATION NEEDS AND ADDITION OF SIGNIFICANT FEA-
TURES.—’’.
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(f) LOOK-BACK PROJECTS.—Section 512(2) of the Multifamily
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) is amended by adding after the period at the end
of the last sentence the following: ‘‘Notwithstanding any other provi-
sion of this title, the Secretary may treat a project as an eligible
multifamily housing project for purposes of this title if (I) the
project is assisted pursuant to a contract for project-based assistance
under section 8 of the United States Housing Act of 1937 renewed
under section 524 of this Act, (II) the owner consents to such
treatment, and (III) the project met the requirements of the first
sentence of this paragraph for eligibility as an eligible multifamily
housing project before the initial renewal of the contract under
section 524.’’.
(g) SECOND MORTGAGES.—Section 517(a) of the Multifamily
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) is amended—
(1) in paragraph (1)(B), by striking ‘‘no more than the’’
and inserting the following: ‘‘not more than the greater of—
‘‘(i) the full or partial payment of claim made under
this subtitle; or
‘‘(ii) the’’; and
(2) in paragraph (5), by inserting ‘‘of the second mortgage,
assign the second mortgage to the acquiring organization or
agency,’’ after ‘‘terms’’.
(h) EXEMPTIONS FROM RESTRUCTURING.—Section 514(h)(2) of
the Multifamily Assisted Housing Reform and Affordability Act
of 1997 (42 U.S.C. 1437f note) is amended by inserting before
the semicolon the following: ‘‘, or refinanced pursuant to section
811 of the American Homeownership and Economic Opportunity
Act of 2000 (12 U.S.C. 1701q note)’’.
SEC. 
613. 
CONSISTENCY 
OF 
RENT 
LEVELS 
UNDER 
ENHANCED
VOUCHER ASSISTANCE AND RENT RESTRUCTURINGS.
Subtitle A 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 new section:
‘‘SEC. 525. CONSISTENCY OF RENT LEVELS UNDER ENHANCED
VOUCHER ASSISTANCE AND RENT RESTRUCTURINGS.
‘‘(a) IN GENERAL.—The Secretary shall examine the standards
and procedures for determining and establishing the rent standards
described under subsection (b). Pursuant to such examination, the
Secretary shall establish procedures and guidelines that are
designed to ensure that the amounts determined by the various
rent standards for the same dwelling units are reasonably consistent
and reflect rents for comparable unassisted units in the same area
as such dwelling units.
‘‘(b) RENT STANDARDS.—The rent standards described in this
subsection are as follows:
‘‘(1) ENHANCED
VOUCHERS.—The payment standard for
enhanced voucher assistance under section 8(t) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(t)).
‘‘(2) MARK-TO-MARKET.—The rents derived from comparable
properties, for purposes of section 514(g) of this Act.
‘‘(3) CONTRACT RENEWAL.—The comparable market rents
for the market area, for purposes of section 524(a)(4) of this
Act.’’.
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SEC. 614. ELIGIBLE INCLUSIONS FOR RENEWAL RENTS OF PARTIALLY
ASSISTED BUILDINGS.
Section 524(a)(4)(C) of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is
amended by adding after the period at the end the following:
‘‘Notwithstanding any other provision of law, the Secretary shall
include in such budget-based cost increases costs relating to the
project as a whole (including costs incurred with respect to units
not covered by the contract for assistance), but only (I) if inclusion
of such costs is requested by the owner or purchaser of the project,
(II) if inclusion of such costs will permit capital repairs to the
project or acquisition of the project by a nonprofit organization,
and (III) to the extent that inclusion of such costs (or a portion
thereof) complies with the requirement under clause (ii).’’.
SEC. 615. ELIGIBILITY OF RESTRUCTURING PROJECTS FOR MISCELLA-
NEOUS HOUSING INSURANCE.
Section 223(a)(7) of the National Housing Act (12 U.S.C.
1715n(a)(7)) is amended—
(1) by striking ‘‘under this Act: Provided, That the prin-
cipal’’ and inserting the following: ‘‘under this Act, or an existing
mortgage held by the Secretary that is subject to a mortgage
restructuring and rental assistance sufficiency plan pursuant
to the Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note), provided that—
‘‘(A) the principal’’;
(2) by striking ‘‘except that (A)’’ and inserting ‘‘except that
(i)’’;
(3) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’;
(4) by striking ‘‘(C)’’ and inserting ‘‘(iii)’’;
(5) by striking ‘‘(D)’’ and inserting ‘‘(iv)’’;
(6) by striking ‘‘: Provided further, That a mortgage’’ and
inserting the following ‘‘; and
‘‘(B) a mortgage’’;
(7) by striking ‘‘or’’ at the end; and
(8) by adding at the end the following new subparagraph:
‘‘(C) a mortgage that is subject to a mortgage restruc-
turing and rental assistance sufficiency plan pursuant to
the Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note) and is refinanced under
this paragraph may have a term of not more than 30
years; or’’.
SEC. 616. TECHNICAL CORRECTIONS.
(a) EXEMPTIONS FROM RESTRUCTURING.—
(1) IN GENERAL.—Section 514(h) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f
note) is amended to read as if the amendment made by section
531(c) of Public Law 106–74 (113 Stat. 1116) were made to
‘‘Section 514(h)(1)’’ instead of ‘‘Section 514(h)’’.
(2) RETROACTIVE EFFECT.—The amendment made by para-
graph (1) of this subsection is deemed to have taken effect
on the date of the enactment of Public Law 106–74 (113 Stat.
1109).
(b) OTHER.—The Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended—
H. R. 3061—50
(1) in section 511(a)(12), by striking ‘‘this Act’’ and inserting
‘‘this title’’;
(2) in section 513, by striking ‘‘this Act’’ each place such
term appears in subsections (a)(2)(I) and (b)(3) and inserting
‘‘this title’’;
(3) in section 514(f)(3)(B), by inserting ‘‘Housing’’ after
‘‘Multifamily’’;
(4) in section 515(c)(1)(B), by inserting ‘‘or’’ after the semi-
colon;
(5) in section 517(b)—
(A) in each of paragraphs (1) through (6), by capital-
izing the first letter of the first word that follows the
paragraph heading;
(B) in each of paragraphs (1) through (5), by striking
the semicolon at the end and inserting a period; and
(C) in paragraph (6), by striking ‘‘; and’’ at the end
and inserting a period;
(6) in section 520(b), by striking ‘‘Banking and’’; and
(7) in section 573(d)(2), by striking ‘‘Banking and’’.
Subtitle B—Office of Multifamily Housing
Assistance Restructuring
SEC. 621. REAUTHORIZATION OF OFFICE AND EXTENSION OF PRO-
GRAM.
Section 579 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended—
(1) by striking subsection (a) and inserting the following
new subsection:
‘‘(a) REPEALS.—
‘‘(1) MARK-TO-MARKET PROGRAM.—Subtitle A (except for sec-
tion 524) is repealed effective October 1, 2006.
‘‘(2) OMHAR.—Subtitle D (except for this section) is
repealed effective October 1, 2004.’’;
(2) in subsection (b), by striking ‘‘October 1, 2001’’ and
inserting ‘‘October 1, 2006’’;
(3) in subsection (c), by striking ‘‘upon September 30, 2001’’
and inserting ‘‘at the end of September 30, 2004’’; and
(4) by striking subsection (d) and inserting the following
new subsection:
‘‘(d) TRANSFER OF AUTHORITY.—Effective upon the repeal of
subtitle D under subsection (a)(2) of this section, all authority
and responsibilities to administer the program under subtitle A
are transferred to the Secretary.’’.
SEC. 622. APPOINTMENT OF DIRECTOR.
(a) IN GENERAL.—Section 572 of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f
note) is amended by striking subsection (a) and inserting the fol-
lowing new subsection:
‘‘(a) APPOINTMENT.—The Office shall be under the management
of a Director, who shall be appointed by the President from among
individuals who are citizens of the United States and have a dem-
onstrated understanding of financing and mortgage restructuring
for affordable multifamily housing.’’.
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year thereafter or any insurance contract voluntary termination
during fiscal year 1996 or a fiscal year thereafter)’’.
SEC. 633. PREPAYMENT AND REFINANCING OF LOANS FOR SECTION
202 SUPPORTIVE HOUSING.
(a) IN GENERAL.—Section 811 of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note)
is amended by striking subsection (e).
(b) EFFECTIVENESS UPON DATE OF ENACTMENT.—The amend-
ment made by subsection (a) of this section shall take effect upon
the date of the enactment of this Act and the provisions of section
811 of the American Homeownership and Economic Opportunity
Act of 2000 (12 U.S.C. 1701q note), as amended by subsection
(a) of this section, shall apply as so amended upon such date
of enactment, notwithstanding—
(1) any authority of the Secretary of Housing and Urban
Development to issue regulations to implement or carry out
the amendments made by subsection (a) of this section or
the provisions of section 811 of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note);
or
(2) any failure of the Secretary of Housing and Urban
Development to issue any such regulations authorized.
SEC. 634. TECHNICAL CORRECTION.
(a) IN GENERAL.—Section 101(a) of Public Law 100–77 (42
U.S.C. 11301 note) is amended to read as if the amendment made
by section 1 of Public Law 106–400 (114 Stat. 1675) were made
to ‘‘Section 101’’ instead of ‘‘Section 1’’.
(b) RETROACTIVE EFFECT.—The amendment made by subsection
(a) of this section is deemed to have taken effect immediately
after the enactment of Public Law 106–400 (114 Stat. 1675).
TITLE VII—MENTAL HEALTH PARITY
SEC. 701. EXTENSION OF CERTAIN PROVISIONS.
(a) ERISA.—Section 712(f) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1185a(f)) is amended by striking
‘‘September 30, 2001’’ and inserting ‘‘December 31, 2002’’.
(b) PHSA.—Section 2705(f) of the Public Health Service Act
(42 U.S.C. 300gg–5(f)) is amended by striking ‘‘September 30, 2001’’
and inserting ‘‘December 31, 2002’’.
(c) INTERNAL REVENUE CODE OF 1986.—Section 9812(f) of the
Internal Revenue Code of 1986 is amended by striking ‘‘September
30, 2001’’ and inserting ‘‘December 31, 2002’’.
SEC. 702. CONGRESSIONAL BUDGET ACT.
Notwithstanding Rule 3 of the Budget Scorekeeping Guidelines
set forth in the joint explanatory statement of the committee of
conference accompanying Conference Report 105–217, the provisions
of this title that would have been estimated by the Office of Manage-
ment and Budget as changing direct spending or receipts under
section 252 of the Balanced Budget and Emergency Deficit Control
Act of 1985 were it included in an Act other than an appropriations
Act shall be treated as direct spending or receipts legislation, as
appropriate, under section 252 of the Balanced Budget and Emer-
gency Deficit Control Act of 1985, and by the Chairmen of the
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House and Senate Budget Committees, as appropriate, under the
Congressional Budget Act.
This Act may be cited as the ‘‘Departments of Labor, Health
and Human Services, and Education, and Related Agencies Appro-
priations Act, 2002’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.