Sec. 5. Exception rents. 
Sec. 6. Otherwise eligible projects. 
Sec. 7. Disaster-damaged eligible projects. 
Sec. 8. Period of eligibility for nonprofit debt relief. 
Sec. 9. Correcting harm caused by late subsidy payments. 
Sec. 10. Effective date. 
SEC. 2. PURPOSES. 
The purpose of this Act is to— 
(1) continue the progress of the Multifamily As-
sisted Housing Reform and Affordability Act of 
1997, as amended by the Mark-To-Market Exten-
sion Act of 2001; 
(2) expand eligibility for Mark-to-Market re-
structuring so as to further the preservation of af-
fordable housing in a cost-effective manner; and 
(3) provide for the preservation and rehabilita-
tion of projects damaged by Hurricanes Katrina, 
Rita, and Wilma, or by other natural disasters. 
SEC. 3. DEFINITIONS. 
Section 512 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1473f 
note) is amended by adding at the end the following: 
‘‘(20) 
DISASTER-DAMAGED
ELIGIBLE 
PROJECT.— 
‘‘(A) IN
GENERAL.—The term ‘disaster- 
damaged eligible project’ means an otherwise el-
igible multifamily housing project— 
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‘‘(i) that is located in a county that 
was designated a major disaster area on or 
after January 1, 2005, by the President 
pursuant to title IV of the Robert T. Staf-
ford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5121 et seq.); 
‘‘(ii) whose owner carried casualty and 
liability insurance covering such project in 
an amount required by the Secretary; 
‘‘(iii) that suffered damages not cov-
ered by such insurance that the Secretary 
determines is likely to exceed $5,000 per 
unit in connection with the natural disaster 
that was the subject of the designation de-
scribed in subparagraph (A); and 
‘‘(iv) whose owner requests restruc-
turing of the project not later than 2 years 
after the date that such damage occurred. 
‘‘(B) RULE
OF
CONSTRUCTION.—A dis-
aster-damaged eligible project shall be eligible 
for amounts under this Act without regard to 
the relationship between rent levels for the as-
sisted units in such project and comparable 
rents for the relevant market area.’’. 
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SEC. 4. EXTENSION OF MARK-TO-MARKET PROGRAM. 
Section 579 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1473f 
note) is amended by striking ‘‘October 1, 2011’’ each place 
such term appears and inserting ‘‘October 1, 2012’’. 
SEC. 5. EXCEPTION RENTS. 
Section 514(g)(2) of the Multifamily Assisted Hous-
ing Reform and Affordability Act of 1997 (42 U.S.C. 
1473f note) is amended— 
(1) by inserting ‘‘disaster-damaged eligible 
projects and’’ after ‘‘waive this limit’’; and 
(2) by striking ‘‘five percent’’ and inserting ‘‘9 
percent’’. 
SEC. 6. OTHERWISE ELIGIBLE PROJECTS. 
Section 514 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1473f 
note) is amended by adding at the end the following: 
‘‘(i) OTHER ELIGIBLE PROJECTS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this subtitle, a project that meets the re-
quirements of subparagraphs (B) and (C) of section 
512(2) but does not meet the requirements of sub-
paragraph (A) of section 512(2), may be treated as 
an eligible multifamily housing project on an excep-
tion basis if the Secretary determines, subject to 
paragraph (2), that such treatment is necessary to 
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preserve the project in the most cost-effective man-
ner in relation to other alternative preservation op-
tions. 
‘‘(2) OWNER REQUEST.— 
‘‘(A) REQUEST REQUIRED.—The Secretary 
shall not treat an otherwise eligible project de-
scribed under paragraph (1) as an eligible mul-
tifamily housing project unless the owner of the 
project requests such treatment. 
‘‘(B) NO ADVERSE TREATMENT IF NO RE-
QUEST MADE.—If the owner of a project does 
not make a request under subparagraph (A), 
the Secretary shall not withhold from such 
project any other available preservation option. 
‘‘(3) CANCELLATION.— 
‘‘(A) TIMING.—At any time prior to the 
completion of a mortgage restructuring under 
this subtitle, the owner of a project may— 
‘‘(i) withdraw any request made under 
paragraph (2)(A); and 
‘‘(ii) pursue any other option with re-
spect to the renewal of such owner’s sec-
tion 8 contract pursuant to any applicable 
statute or regulation. 
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‘‘(B) DOCUMENTATION.—If an owner of a 
project withdraws such owner’s request and 
pursues other renewal options under this para-
graph, such owner shall be entitled to submit 
documentation or other information to replace 
the documentation or other information used 
during processing for mortgage restructuring 
under this subtitle. 
‘‘(4) LIMITATION.—The Secretary may exercise 
the authority to treat projects as eligible multifamily 
housing projects pursuant to this subsection only to 
the extent that the number of units in such projects 
do not exceed 10 percent of all units for which mort-
gage restructuring pursuant to section 517 is com-
pleted.’’. 
SEC. 7. DISASTER-DAMAGED ELIGIBLE PROJECTS. 
(a) MARKET
RENT
DETERMINATIONS.—Section 
514(g)(1)(B) of the Multifamily Assisted Housing Reform 
and Affordability Act of 1997 (42 U.S.C. 1473f note) is 
amended by striking ‘‘determined, are equal’’ and insert-
ing the following: ‘‘determined— 
‘‘(i) with respect to a disaster-dam-
aged eligible property, are equal to 100 
percent of the fair market rents for the rel-
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evant market area (as such rents were in 
effect at the time of such disaster; and 
‘‘(ii) with respect to other eligible 
multifamily housing projects, are equal’’. 
(b) OWNER INVESTMENT.—Section 517(c) of the 
Multifamily Assisted Housing Reform and Affordability 
Act of 1997 (42 U.S.C. 1473f note) is amended by adding 
at the end the following: 
‘‘(3) PROPERTIES DAMAGED BY NATURAL DIS-
ASTERS.—With respect to a disaster-damaged eligi-
ble property, the owner contribution toward rehabili-
tation needs shall be determined in accordance with 
paragraph (2)(C).’’. 
SEC. 8. PERIOD OF ELIGIBILITY FOR NONPROFIT DEBT RE-
LIEF. 
Section 517(a)(5) of the Multifamily Assisted Hous-
ing Reform and Affordability Act of 1997 (42 U.S.C. 
1473f note) is amended by adding at the end the following: 
‘‘If such purchaser acquires such project subsequent to the 
date of recordation of the affordability agreement de-
scribed in section 514(e)(6)— 
‘‘(1) such purchaser shall acquire such project 
on or before the later of— 
‘‘(A) 5 years after the date of recordation 
of the affordability agreement; or 
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‘‘(B) 2 years after the date of enactment 
of the Mark-to-Market Extension and Enhance-
ment Act of 2007; and 
‘‘(2) the Secretary shall have received, and de-
termined acceptable, such purchaser’s application for 
modification, assignment, or forgiveness prior to the 
acquisition of the project by such purchaser.’’. 
SEC. 9. CORRECTING HARM CAUSED BY LATE SUBSIDY 
PAYMENTS. 
Section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f) is amended by adding at the end the 
following new subsection: 
‘‘(ff) LATE PAYMENTS.— 
‘‘(1) GENERAL.—The Secretary shall make pay-
ments of project-based rental assistance provided 
under this section for each month on or before the 
due date under paragraph (2) for the payment. 
‘‘(2) DUE
DATE.—The due date under this 
paragraph for a monthly payment is the first busi-
ness day of the month. 
‘‘(3) NOTIFICATION OF LATE PAYMENT.—The 
Secretary shall notify a project owner at least 10 
days before the due date for a housing assistance 
payment if such payment will be late and shall in-
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form the project owner of the approximate date the 
payment will be made. 
‘‘(4) USE OF RESERVES.—If a housing assist-
ance payment for a project has not been received be-
fore the expiration of the 10-day period beginning 
upon the due date for such payment, the project 
owner shall, after the expiration of such period, be 
entitled to obtain funds from a project replacement 
reserve, residual receipts reserve, or other project re-
serve in order to pay operating and debt service 
costs for the project. 
‘‘(5) INTEREST PAYMENT.—If a monthly hous-
ing assistance payment is not made before the expi-
ration of the 30-day period beginning upon the due 
date for such payment, the Secretary shall pay to 
the owner simple interest on the amount of such 
monthly payment, from the due date until the date 
of payment, at a rate determined by the Secretary 
of Treasury in accordance with section 12 of the 
Contract Disputes Act of 1978 (41 U.S.C. 611). In-
terest payments under this paragraph shall be made 
from amounts made available for management and 
administration of the Department of Housing and 
Urban Development.’’. 
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SEC. 10. EFFECTIVE DATE. 
This Act, and the amendments made by this Act, 
shall take effect on the earlier of— 
(1) the date of enactment of this Act; or 
(2) September 30, 2008. 
Æ 
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