186
(b) SELECTION.—The Secretary of Housing and
Urban Development shall establish the criteria for partici-
pation in the demonstration program under this section
and, during the period consisting of fiscal years 2003
through 2004 shall, to the extent amounts are made avail-
able under subsection (d), select not more than three appli-
cants for participation in this program.
(c) REPORT.—Not later than February 1, 2005, the
Secretary of Housing and Urban Development shall submit
a report to the Congress describing the results of the dem-
onstration program under this section, analyzing the effec-
tiveness of the program, and including recommendations,
if any, for continuation or replication.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as may be nec-
essary for the demonstration program under this section.
SEC. 917. HUD STUDY REGARDING MAIN STREET PARTNER-
SHIP.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall conduct a study to determine—
(1) the feasibility and effectiveness of establishing
a Federal Main Street Partnership Fund to make
grants to local communities to assist in making fast-
track changes to zoning and planning regulations
that may inhibit the revitalization of downtown com-
187
mercial areas for mixed-use affordable housing as well
as commercial uses;
(2) the extent to which local zoning and plan-
ning regulations inhibit the ability of developers to
create affordable housing in traditional Main Street
commercial districts where commercially zoned build-
ings have vacant and serviceable housing which can-
not be used for housing due to such zoning;
(3) whether fast-tracking zoning modifications
and other related incentives would reduce the costs of
redeveloping commercial buildings in traditional
Main Street commercial districts for mixed-use af-
fordable housing as well as commercial and retail
uses; and
(4) what eligible planning activities should re-
ceive funding under such a Federal Main Street Part-
nership Fund, such as salary of staff involved in fast-
track re-zoning and surveying and mapping involved
in the rezoning.
(b) WORKING GROUP.—In conducting the study, the
Secretary shall convene a working group and shall solicit
views and recommendations from the members of the group.
The group shall include representatives of local governments
of varying sizes in various regions, developers, realtors,
mortgage bankers, community bankers, local non-profit
188
business membership organizations, such as Chambers of
Commerce, community-based affordable housing advocacy
organizations, and such other parties as the Secretary con-
siders appropriate.
(c) REPORT.—Not later than 180 days after the date
of the enactment of this Act, the Secretary shall submit a
report regarding the findings of the study, which shall in-
clude recommendations regarding the establishment of a
Federal Main Street Partnership Fund, to the Committee
on Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs
of the Senate.
SEC. 918. CONTRACTUAL COMMITMENTS FOR RURAL MUL-
TIFAMILY RENTAL HOUSING.
(a) PREPAYMENT.—Notwithstanding any other provi-
sion of law and subject only to subsection (d) of this section,
an owner of eligible low-income rural housing may prepay
the loan on such housing made or insured under section
514 or 515 of the Housing Act of 1949 without restrictions
at any time after the later of—
(1) 20 years from the date on which the loan was
made; and
(2) the date until which the owner has agreed
with the Secretary of Agriculture, or the Secretary’s
189
delegee, to maintain the low-income use of the hous-
ing.
(b) ELIGIBLE LOW-INCOME RURAL HOUSING.—For
purposes of this section, the term ‘‘eligible low-income rural
housing’’ means housing that is financed by a loan made
or insured under section 514 or 515 of the Housing Act
of 1949 (42 U.S.C. 1484, 1485) pursuant to a contract en-
tered into prior to December 15, 1989.
(c) TENANT PROTECTION.—
(1) PROVISION OF ENHANCED VOUCHER ASSIST-
ANCE.—To the extent that amounts for assistance
pursuant to this subsection are provided in advance
in appropriation Acts, upon the prepayment of a
loan pursuant to this section, enhanced voucher as-
sistance under section 8(t) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f(t)) shall be made
available on behalf of each low-income family who is
residing in the project on the date the loan is prepaid.
(2) ENSURING
ABILITY
TO
USE
ENHANCED
VOUCHER ASSISTANCE.—Each low-income family re-
siding in the project on the date the loan is prepaid
may elect to remain in the same project, subject to the
terms of the lease for rental of the dwelling unit, and
may use such enhanced voucher assistance for lease of
such dwelling unit. The owner of the project may not
190
refuse to accept enhanced voucher assistance made
available on behalf of any such low-income family for
lease of such a dwelling unit or to enter into a hous-
ing assistance payments contract for such a unit.
(d) TENANT PROTECTION
AND NOTICE REQUIRE-
MENTS.—An owner of eligible low-income rural housing
may not, pursuant to subsection (a), prepay the loan on
such housing made or insured under section 514 or 515 of
the Housing Act of 1949 unless—
(1) amounts are provided in advance in appro-
priation Acts, and are obligated, for assistance pursu-
ant to subsection (c) of this section on behalf of each
low-income family who is residing in the project on
the date that the loan is prepaid; and
(2) not less than 150 days before such prepay-
ment, the owner of the project provides written notice
of intent to prepay, in such form as the Secretary of
Agriculture shall prescribe, to each tenant of the hous-
ing, the Secretary of Agriculture, the Secretary of
Housing and Urban Development, and the chief exec-
utive officer of the appropriate State or local govern-
ment for the jurisdiction within which the housing is
located.
191
(e) CONFORMING AMENDMENT.—Section 8(t)(2) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(t)(2))
is amended—
(1) by inserting ‘‘or loan’’ after ‘‘the prepayment
of the mortgage’’; and
(2) by inserting ‘‘section 914 of the Housing Af-
fordability for America Act of 2002,’’ after ‘‘(12
U.S.C. 4113(f)),’’.
Union Calendar No. 404
107TH CONGRESS
2D SESSION
H. R. 3995
[Report No. 107–640, Parts I and II]
A BILL
To amend and extend certain laws relating to hous-
ing and community opportunity, and for other
purposes.
SEPTEMBER 17, 2002
Reported from the Committee on Financial Services with
an amendment; committed to the Committee of the
Whole House on the State of the Union and ordered
to be printed