I 
108TH CONGRESS 
1ST SESSION 
H. R. 445
To authorize the Secretary of Housing and Urban Development to make 
grants to States to supplement State assistance for the preservation 
of affordable housing for low-income families. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 29, 2003
Mr. NADLER (for himself, Mr. BERMAN, Ms. CORRINE BROWN of Florida, Mr. 
BROWN of Ohio, Mr. DAVIS of Florida, Ms. DELAURO, Mr. FARR, Mr. 
FRANK of Massachusetts, Mr. HONDA, Mrs. JONES of Ohio, Mr. KEN-
NEDY of Rhode Island, Mr. LANTOS, Ms. LOFGREN, Mr. LYNCH, Ms. 
MCCOLLUM, Mr. MCDERMOTT, Mrs. MALONEY, Ms. MILLENDER-
MCDONALD, Ms. NORTON, Mr. OLVER, Mr. OWENS, Mr. RANGEL, Mr. 
RODRIGUEZ, Mr. SABO, Mr. SANDERS, Ms. SCHAKOWSKY, Mr. STARK, 
Mr. TIERNEY, Mr. WEINER, and Ms. WOOLSEY) introduced the following 
bill; which was referred to the Committee on Financial Services 
A BILL 
To authorize the Secretary of Housing and Urban Develop-
ment to make grants to States to supplement State 
assistance for the preservation of affordable housing for 
low-income families.
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 ‘‘Housing Preservation 
Matching Grant Act of 2003’’.
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that—
(1) more than 55,300 affordable housing dwell-
ing units in the United States have been lost 
through termination of low income affordability re-
quirements, which usually involves the prepayment 
of the outstanding principal balance under the mort-
gage on the project in which such units are located; 
(2) more than 265,000 affordable housing 
dwelling units in the United States are currently at 
risk of prepayment; 
(3) the loss of the privately owned, federally as-
sisted affordable housing, which is occurring during 
a period when rents for unassisted housing are in-
creasing and few units of additional affordable hous-
ing are being developed, will cause unacceptable 
harm on current tenants of affordable housing and 
will precipitate a national crisis in the supply of 
housing for low-income households; 
(4) the demand for affordable housing far ex-
ceeds the supply of such housing, as evidenced by 
studies in 1998 that found that—
(A) 5,300,000 households (one-seventh of 
all renters in the Nation) have worst-case hous-
ing needs; and
(B) the number of families with at least 
one full-time worker and having worst-case 
housing needs increased from 1991 to 1995 by 
265,000 (24 percent) to almost 1,400,000; 
(5) the shortage of affordable housing in the 
United States reached a record high in 1995, when 
the number of low-income households exceeded the 
number of low-cost rental dwelling units by 
4,400,000; 
(6) between 1990 and 1995, the shortage of af-
fordable housing in the United States increased by 
1,000,000 dwelling units, as the supply of low-cost 
units decreased by 100,000 and the number of low-
income renter households increased by 900,000; 
(7) there are nearly 2 low-income renters in the 
United States for every low-cost rental dwelling unit; 
(8) 2 of every 3 low-income renters receive no 
housing assistance and about 2,000,000 low-income 
households remain on waiting lists for affordable 
housing; 
(9) the shortage of affordable housing dwelling 
units results in low-income households that are not 
able to acquire low-cost rental units paying large 
proportions of their incomes for rent; and
(10) in 1995, 82 percent of low-income renter 
households were paying more than 30 percent of 
their incomes for rent and utilities. 
(b) PURPOSE.—It is the purpose of this Act—
(1) to promote the preservation of affordable 
housing units by providing matching grants to 
States that have developed and funded programs for 
the preservation of privately owned housing that is 
affordable to low-income families and persons and 
was produced for such purpose with Federal assist-
ance; 
(2) to minimize the involuntary displacement of 
tenants who are currently residing in such housing, 
many of whom are elderly or disabled persons; and 
(3) to continue the partnerships among the 
Federal Government, State and local governments, 
and the private sector in operating and assisting 
housing that is affordable to low-income Americans. 
SEC. 3. AUTHORITY. 
The Secretary of Housing and Urban Development 
shall, to the extent amounts are made available pursuant 
to section 11, make grants under this Act to States for 
low-income housing preservation.
(D) held by the Secretary and formerly in-
sured under a program referred to in subpara-
graph (A), (B), or (C); 
(2) the project is subject to an unconditional 
waiver of, with respect to the mortgage referred to 
in paragraph (1)—
(A) all rights to any prepayment of the 
mortgage; and 
(B) all rights to any voluntary termination 
of the mortgage insurance contract for the 
mortgage; and 
(3) the owner of the project has entered into 
binding commitments (applicable to any subsequent 
owner) to extend all low-income affordability restric-
tions for the project, including any such restrictions 
imposed because of any contract for project-based 
assistance for the project. 
(c) PROJECTS WITH SECTION 8 PROJECT-BASED AS-
SISTANCE.—A project meets the requirements under this 
subsection only if—
(1) the project is subject to a contract for 
project-based assistance; and 
(2) the owner of the project has entered into 
binding commitments (applicable to any subsequent 
owner) to extend such assistance for the maximum
period allowable under law (subject to the avail-
ability of amounts for such purpose) and to extend 
any low-income affordability restrictions applicable 
to the project in connection with such assistance. 
(d) PROJECTS
PURCHASED
BY
RESIDENTS.—A 
project meets the requirements under this subsection only 
if the project—
(1) is or was eligible low-income housing (as 
such term is defined in section 229 of the Low-In-
come Housing Preservation and Resident Home-
ownership Act of 1990 (42 U.S.C. 4119); and 
(2) has been purchased by a resident council for 
the housing or is approved by the Secretary for such 
purchase, for conversion to homeownership housing 
under a resident homeownership program meeting 
the requirements under section 226 of such Act (12 
U.S.C. 4116). 
(e) 
COMBINATION
OF
ASSISTANCE.—Notwith-
standing subsection (a), any project that is otherwise eligi-
ble for assistance with grant amounts provided under this 
Act because the project meets the requirements under sub-
section (b) or (c) and that also meets the requirements 
under paragraph (1) of the other of such subsections, shall 
be eligible for such assistance only if the project complies 
with all of the requirements under such other subsection.
SEC. 5. GRANT AMOUNT LIMITATION. 
The Secretary shall limit the portion of the aggregate 
amount of grants under this Act made available for any 
fiscal year that may be provided to a single State based 
upon the proportion of such State’s need (as determined 
by the Secretary) for such assistance to the aggregate 
need among all States approved for such assistance for 
such fiscal year. 
SEC. 6. MATCHING REQUIREMENT. 
(a) IN GENERAL.—The Secretary may not make a 
grant under this Act to any State for any fiscal year in 
an amount that exceeds twice the amount that the State 
certifies, as the Secretary shall require, that the State will 
contribute for such fiscal year, or has contributed since 
January 1, 2003, from non-Federal sources for the pur-
poses under section 4(a). 
(b) TREATMENT OF PREVIOUS CONTRIBUTIONS.—
Any portion of amounts contributed after January 1, 
2003, that are counted for purposes of meeting the re-
quirement under subsection (a) for a fiscal year may not 
be counted for such purposes for any subsequent fiscal 
year. 
(c) TREATMENT OF TAX CREDITS.—Tax credits pro-
vided under section 42 of the internal revenue code of 
1986 and proceeds from the sale of tax-exempt bonds by
any State or local government entity shall not be consid-
ered non-Federal sources for purposes of this section 
SEC. 7. TREATMENT OF SUBSIDY LAYERING REQUIRE-
MENTS. 
Neither section 6 nor any other provision of this Act 
may be construed to prevent the use of tax credits pro-
vided under section 42 of the Internal Revenue Code of 
1986 in connection with housing assisted with grant 
amounts provided under this Act, to the extent that such 
use is in accordance with section 102(d) of the Depart-
ment of Housing and Urban Development Reform Act of 
1989 (42 U.S.C. 3545(d)) and section 911 of the Housing 
and Community Development Act of 1992 (42 U.S.C. 
3545 note). 
SEC. 8. APPLICATIONS. 
The Secretary shall provide for States (through ap-
propriate State agencies) to submit applications for grants 
under this Act. The Secretary shall require the applica-
tions to contain any information and certifications nec-
essary for the Secretary to determine whether the State 
is eligible to receive such a grant. 
SEC. 9. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply:
(1) LOW-INCOME
AFFORDABILITY
RESTRIC-
TIONS.—The term ‘‘low-income affordability restric-
tions’’ means, with respect to a housing project, any 
limitations imposed by regulation or regulatory 
agreement on rents for tenants of the project, rent 
contributions for tenants of the project, or income-
eligibility for occupancy in the project. 
(2) PROJECT-BASED
ASSISTANCE.—The term 
‘‘project-based assistance’’ has the meaning given 
such term in section 16(c) of the United States 
Housing Act of 1937 (42 U.S.C. 1437n(c)), except 
that such term includes assistance under any suc-
cessor programs to the programs referred to in such 
section. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(4) STATE.—The term ‘‘State’’ means the 
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Guam, 
the Virgin Islands, American Samoa, and any other 
territory or possession of the United States. 
SEC. 10. REGULATIONS. 
The Secretary may issue any regulations necessary 
to carry out this Act.
SEC. 11. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated for grants 
under this title such sums as necessary for each of fiscal 
years 2003, 2004, 2005, 2006, and 2007.
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