I 
113TH CONGRESS 
2D SESSION 
H. R. 4146 
To amend the Low-Income Housing Preservation and Resident 
Homeownership Act of 1990. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 4, 2014 
Mr. PAULSEN introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Low-Income Housing Preservation and 
Resident Homeownership Act of 1990. 
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 ‘‘Preservation Enhance-
ment and Savings Opportunity Act of 2014’’. 
SEC. 2. DISTRIBUTIONS AND RESIDUAL RECEIPTS. 
Section 222 of the Low-Income Housing Preservation 
and Resident Homeownership Act of 1990 (12 U.S.C. 
4112) is amended by adding at the end the following new 
subsection: 
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‘‘(e) DISTRIBUTION AND RESIDUAL RECEIPTS.— 
‘‘(1) AUTHORITY.—After the date of the enact-
ment of the Preservation Enhancement and Savings 
Opportunity Act of 2014, the owner of a property 
subject to a plan of action or use agreement pursu-
ant to this section shall be entitled to distribute— 
‘‘(A) annually, all surplus cash generated 
by the property; and 
‘‘(B) upon request made to the Secretary 
and notwithstanding any conflicting provision in 
such use agreement; any funds accumulated in 
a residual receipts account, but only if the 
owner is in material compliance with such use 
agreement. 
‘‘(2) OPERATION
OF
PROPERTY.—An owner 
that distributes any amounts pursuant to paragraph 
(1) shall— 
‘‘(A) continue to operate the property in 
accordance with the affordability provisions of 
the use agreement for the property for the re-
maining useful life of the property; 
‘‘(B) as required by the plan of action for 
the property, continue to renew or extend any 
project-based rental assistance contract for a 
term of not less than 20 years; and 
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‘‘(C) if the owner has an existing multi- 
year project-based rental assistance contract for 
less than 20 years, have the option to extend 
the contract to a 20-year term.’’. 
SEC. 3. FUTURE REFINANCINGS. 
Section 214 of the Low-Income Housing Preservation 
and Resident Homeownership Act of 1990 (12 U.S.C. 
4104) is amended by adding at the end the following new 
subsection: 
‘‘(c) FUTURE FINANCING.—Neither this section, nor 
any plan of action or use agreement implementing this 
section, shall restrict an owner from obtaining a new loan 
or refinancing an existing loan secured by the project, or 
from distributing the proceeds of such a loan; except that, 
in conjunction with such refinancing— 
‘‘(1) the owner shall provide for adequate reha-
bilitation pursuant to a capital needs assessment to 
ensure long-term sustainability of the property satis-
factory to the lender or bond issuance agency; 
‘‘(2) any resulting budget-based rent increase 
shall include debt service on the new financing, com-
mercially reasonable debt service coverage, and re-
placement reserves as required by the lender; and 
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‘‘(3) rent increases for units not covered by a 
project-based rental subsidy contract or tenant-based 
rental subsidy shall be limited to 10 percent.’’. 
Æ 
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