tend the low income use of the assisted housing
and related facilities involved as provided under
subparagraph (A), the borrower may prepay the
loan pursuant to paragraph (1) or (2).
‘‘(6) SALE TO NONPROFIT ORGANIZATIONS AND
PUBLIC AGENCIES.—If a borrower who is authorized
to prepay a loan pursuant to paragraph (1) or (2)
agrees to sell the assisted housing and related facili-
ties involved to a nonprofit organization or public
agency at fair market value, the Secretary, in order
to facilitate the sale, may take one or more of the
following actions:
‘‘(A) ADVANCE FOR CERTAIN COSTS RE-
LATING
TO
ACQUISITION.—To 
the 
extent
amounts for advances under this clause are
made available in advance in appropriation
Acts, make an advance to the nonprofit organi-
zation or public agency whose offer to purchase
is accepted under this paragraph to cover any
direct costs (other than the purchase price) in-
curred by the organization or agency in pur-
chasing and assuming responsibility for the
housing and related facilities.
‘‘(B) ASSUMPTION OF LOAN.—Approve the
assumption, by the nonprofit organization or
public agency involved, of the loan made or in-
sured under section 514 or 515.
‘‘(C) TRANSFER OF ASSISTANCE.—To the
extent provided in appropriation Acts, transfer
any rental assistance payments that are re-
ceived under section 521(a)(2)(A) or under sec-
tion 8 of the United States Housing Act of
1937, with respect to the housing and related
facilities, to the nonprofit organization or public
agency involved.
‘‘(D) PURCHASE
LOAN.—To the extent
budget authority for such loans is provided in
advance in appropriation Acts, provide a loan
under section 515(c)(3) to the nonprofit organi-
zation or public agency whose offer to purchase
is accepted under this paragraph to enable the
organization or agency to purchase the housing
and related facilities involved.
‘‘(E) RENTAL ASSISTANCE.—To the extent
amounts for assistance under this clause are
provided in advance in appropriation Acts, pro-
vide to the nonprofit organization or public
agency purchasing the housing and related fa-
cilities financial assistance (in the form of
monthly payments or forgiveness of debt) in an
amount necessary to ensure that the monthly
rent payment made by each low income family
or person residing in the housing does not ex-
ceed the maximum rent permitted under section
521(a)(2)(A).
‘‘(7) FUNDING.—In addition to any other
amounts made available for providing incentives
under paragraph (5), any amounts resulting from
the prepayment of loans made or insured under sec-
tion 514 or 515 of this title shall be available, to the
extent provided in appropriation Acts, for providing
incentives under paragraph (5) and for costs of ac-
tions under paragraph (6) in connection with sale of
projects to nonprofit organizations and public agen-
cies. Such amounts shall be available first for the
uses described in the preceding sentence and if not
so used, then for other uses in accordance with other
provisions of law authorizing such use.
‘‘(8) TENANT PROTECTION.—If a loan is pre-
paid pursuant to paragraph (1) or (2), the Secretary
shall offer tenant-based assistance under section 8 of
the United States Housing Act of 1937 to each low
income tenant residing in the housing involved at
the time of such prepayment, subject to the avail-
ability of appropriated amounts for such assistance.
If after prepayment the rent for a dwelling unit in
such housing exceeds the applicable payment stand-
ard established pursuant to section 8(o) of such Act,
the assistance offered under this paragraph shall be
in the form of enhanced vouchers under section 8(t)
of such Act, subject to the availability of appro-
priated amounts for such assistance.’’.
SEC. 3. ENHANCED VOUCHER ELIGIBILITY.
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 ‘‘of the mort-
gage’’; and
(2) by inserting ‘‘section 502(c)(8) of the Hous-
ing Act of 1959 (42 U.S.C. 1472(c)(8)),’’ after ‘‘(12
U.S.C. 413(f)),’’.
SEC. 4. RURAL RENTAL HOUSING LOAN TERM.
In the case of a loan made or insured under section
515 of the Housing Act of 1949 pursuant to a contract
entered into before the date of the enactment of this Act,
if the Secretary of Agriculture and the borrower under the
loan agree to such applicability, the amendments made by
section 735(b)(3) of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Ap-
propriations Act, 1998 (Public Law 105–86; 111 Stat.
2110) shall apply to such loan. In no case shall the bor-
rower be obligated to accept a new loan pursuant to sec-
tion 515(b)(7) of the Housing Act of 1949 for financing
the final payment of the original loan.
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