SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Mark-to-Market Extension Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Purposes.
Sec. 3. Effective date.
TITLE I—MULTIFAMILY HOUSING MORTGAGE AND ASSISTANCE
RESTRUCTURING AND SECTION 8 CONTRACT RENEWAL
Sec. 101. Definitions.
Sec. 102. Mark-to-market program amendments.
Sec. 103. Consistency of rent levels under enhanced voucher assistance and rent
restructurings.
Sec. 104. Eligible inclusions for renewal rents of partially assisted buildings.
Sec. 105. Eligibility of restructuring projects for miscellaneous housing insur-
ance.
Sec. 106. Technical corrections.
TITLE II—OFFICE OF MULTIFAMILY HOUSING ASSISTANCE
RESTRUCTURING
Sec. 201. Reauthorization of Office and extension of program.
Sec. 202. Appointment of Director.
Sec. 203. Vacancy in position of Director.
Sec. 204. Oversight by Federal Housing Commissioner.
Sec. 205. Limitation on subsequent employment.
TITLE III—MISCELLANEOUS HOUSING PROGRAM AMENDMENTS
Sec. 301. Extension of CDBG public services cap exception.
Sec. 302. Use of section 8 enhanced vouchers for prepayments.
Sec. 303. Prepayment and refinancing of loans for section 202 supportive hous-
ing.
Sec. 304. Technical correction.
SEC. 2. PURPOSES.
The purposes of this Act are—
(1) to continue the progress of the Multifamily
Assisted Housing Reform and Affordability Act of
1997 (referred to in this section as ‘‘that Act’’);
(2) to ensure that properties that undergo
mortgage restructurings pursuant to that Act are re-
habilitated to a standard that allows the properties
to meet their long-term affordability requirements;
(3) to ensure that, for properties that undergo
mortgage restructurings pursuant to that Act, re-
serves are set at adequate levels to allow the prop-
erties to meet their long-term affordability require-
ments;
(4) to ensure that properties that undergo
mortgage restructurings pursuant to that Act are
operated efficiently, and that operating expenses are
sufficient to ensure the long-term financial and
physical integrity of the properties;
(5) to ensure that properties that undergo rent
restructurings have adequate resources to maintain
the properties in good condition;
(6) to ensure that the Office of Multifamily
Housing Assistance Restructuring of the Depart-
ment of Housing and Urban Development continues
to focus on the portfolio of properties eligible for re-
structuring under that Act;
(7) to ensure that the Department of Housing
and Urban Development carefully tracks the condi-
tion of those properties on an ongoing basis;
(8) to ensure that tenant groups, nonprofit or-
ganizations, and public entities continue to have the
resources for building the capacity of tenant organi-
zations in furtherance of the purposes of subtitle A
of that Act; and
(9) to encourage the Office of Multifamily
Housing Assistance Restructuring to continue to
provide participating administrative entities, includ-
ing public participating administrative entities, with
the flexibility to respond to specific problems that in-
dividual cases may present, while ensuring consistent
outcomes around the country.
SEC. 3. EFFECTIVE DATE.
Except as provided in sections 106(a)(2), 303(b), and
304(b), this Act and the amendments made by this Act
shall take effect or are deemed to have taken effect, as
appropriate, on the earlier of—
(1) the date of the enactment of this Act; or
(2) September 30, 2001.
TITLE 
I—MULTIFAMILY 
HOUS-
ING MORTGAGE AND ASSIST-
ANCE RESTRUCTURING AND
SECTION 
CONTRACT 
RE-
NEWAL
SEC. 101. DEFINITIONS.
Section 512 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f
note) is amended by adding at the end the following new
paragraph:
‘‘(19) OFFICE.—The term ‘Office’ means the
Office of Multifamily Housing Assistance Restruc-
turing established under section 571.’’.
SEC. 102. MARK-TO-MARKET PROGRAM AMENDMENTS.
(a) FUNDING FOR TENANT AND NONPROFIT PAR-
TICIPATION.—Section 514(f)(3)(A) of the Multifamily As-
sisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note) is amended—
(1) by striking ‘‘Secretary may provide not
more than $10,000,000 annually in funding’’ and in-
serting ‘‘Secretary shall make available not more
than $10,000,000 annually in funding, which
amount shall be in addition to any amounts made
available under this subparagraph and carried over
from previous years,’’; and
(2) by striking ‘‘entities) and for tenant serv-
ices,’’ and inserting ‘‘entities), for tenant services,
and for tenant groups, nonprofit organizations, and
public entities described in section 517(a)(5),’’.
(b) EXCEPTION RENTS.—Section 514(g)(2)(A) of the
Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note) is amended by strik-
ing ‘‘restructured mortgages in any fiscal year’’ and in-
serting ‘‘portfolio restructuring agreements’’.
(c) NOTICE
TO
DISPLACED
TENANTS.—Section
516(d) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is
amended by striking ‘‘Subject to’’ and inserting the fol-
lowing:
‘‘(1) NOTICE
TO
CERTAIN
RESIDENTS.—The
Office shall notify any tenant that is residing in a
project or receiving assistance under section 8 of the
United States Housing Act of 1937 (42 U.S.C.
1437f) at the time of rejection under this section, of
such rejection, except that the Office may delegate
the responsibility to provide notice under this para-
graph to the participating administrative entity.
‘‘(2) ASSISTANCE
AND
MOVING
EXPENSES.—
Subject to’’.
(d) RESTRUCTURING PLANS
FOR TRANSFERS
OF
PREPAYMENT
PROJECTS.—The Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) is amended—
(1) in section 524(e), by adding at the end the
following new paragraph:
‘‘(3) MORTGAGE RESTRUCTURING AND RENTAL
ASSISTANCE SUFFICIENCY PLANS.—Notwithstanding
paragraph (1), the owner of the project may request,
and the Secretary may consider, mortgage restruc-
turing and rental assistance sufficiency plans to fa-
cilitate sales or transfers of properties under this
subtitle, subject to an approved plan of action under
the Emergency Low Income Housing Preservation
Act of 1987 (12 U.S.C. 1715l note) or the Low-In-
come Housing Preservation and Resident Home-
ownership Act of 1990 (12 U.S.C. 4101 et seq.),
which plans shall result in a sale or transfer of those
properties.’’; and
(2) in the last sentence of section 512(2), by in-
serting ‘‘, but does include a project described in
section 524(e)(3)’’ after ‘‘section 524(e)’’.
(e) ADDITION OF SIGNIFICANT FEATURES.—Section
517 of the Multifamily Assisted Housing Reform and Af-
fordability Act of 1997 (42 U.S.C. 1437f note) is
amended—
(1) by striking subsection (c) (except that the
striking of such subsection may not be construed to
have any effect on the provisions of law amended by
such subsection, as such subsection was in effect be-
fore the date of the enactment of this Act);
(2) in subsection (b)—
(A) in paragraph (7), by striking ‘‘(7)’’
and inserting ‘‘(1)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(2) ADDITION OF SIGNIFICANT FEATURES.—
‘‘(A) AUTHORITY.—An approved mortgage
restructuring and rental assistance sufficiency
plan may require the improvement of the
project by the addition of significant features
that are not necessary for rehabilitation to the
standard provided under paragraph (1), such as
air conditioning, an elevator, and additional
community space. The Secretary shall establish
guidelines regarding the inclusion of require-
ments regarding such additional significant fea-
tures under such plans.
‘‘(B) 
FUNDING.—Significant 
features
added pursuant to an approved mortgage re-
structuring and rental assistance sufficiency
plan may be paid from the funding sources
specified in the first sentence of paragraph
(1)(A).
‘‘(C) LIMITATION
ON
OWNER
CONTRIBU-
TION.—An owner of a project may not be re-
quired to contribute from non-project resources,
toward the cost of any additional significant
features required pursuant to this paragraph,
more than 25 percent of the amount of any as-
sistance received for the inclusion of such fea-
tures.
‘‘(D) 
APPLICABILITY.—This 
paragraph
shall apply to all eligible multifamily housing
projects, except projects for which the Secretary
and the project owner executed a mortgage re-
structuring and rental assistance sufficiency
plan on or before the date of the enactment of
the Mark-to-Market Extension Act of 2001.’’;
and
(3) by inserting after paragraph (6) of sub-
section (b) the following:
‘‘(c) REHABILITATION NEEDS
AND ADDITION
OF
SIGNIFICANT FEATURES.—’’.
(f) LOOK-BACK PROJECTS.—Section 512(2) of the
Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note) is amended by adding
after the period at the end of the last sentence the fol-
lowing: ‘‘Notwithstanding any other provision of this title,
the Secretary may treat a project as an eligible multi-
family housing project for purposes of this title if (I) the
project is assisted pursuant to a contract for project-based
assistance under section 8 of the United States Housing
Act of 1937 renewed under section 524 of this Act, (II)
the owner consents to such treatment, and (III) the
project met the requirements of the first sentence of this
paragraph for eligibility as an eligible multifamily housing
project before the initial renewal of the contract under sec-
tion 524.’’.
(g) SECOND MORTGAGES.—Section 517(a) of the
Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note) is amended—
(1) in paragraph (1)(B), by striking ‘‘no more
than the’’ and inserting the following: ‘‘not more
than the greater of—
‘‘(i) the full or partial payment of
claim made under this subtitle; or
‘‘(ii) the’’; and
(2) in paragraph (5), by inserting ‘‘of the sec-
ond mortgage, assign the second mortgage to the ac-
quiring organization or agency,’’ after ‘‘terms’’.
(h) EXEMPTIONS FROM RESTRUCTURING.—Section
514(h)(2) of the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42 U.S.C. 1437f note) is
amended by inserting before the semicolon the following:
‘‘, or refinanced pursuant to section 811 of the American
Homeownership and Economic Opportunity Act of 2000
(12 U.S.C. 1701q note)’’.
SEC. 103. CONSISTENCY OF RENT LEVELS UNDER EN-
HANCED VOUCHER ASSISTANCE AND RENT
RESTRUCTURINGS.
Subtitle A of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f
note) is amended by adding at the end the following new
section:
‘‘SEC. 525. CONSISTENCY OF RENT LEVELS UNDER EN-
HANCED VOUCHER ASSISTANCE AND RENT
RESTRUCTURINGS.
‘‘(a) IN GENERAL.—The Secretary shall examine the
standards and procedures for determining and estab-
lishing the rent standards described under subsection (b).
Pursuant to such examination, the Secretary shall estab-
lish procedures and guidelines that are designed to ensure
that the amounts determined by the various rent stand-
ards for the same dwelling units are reasonably consistent
and reflect rents for comparable unassisted units in the
same area as such dwelling units.
‘‘(b) RENT STANDARDS.—The rent standards de-
scribed in this subsection are as follows:
‘‘(1) ENHANCED
VOUCHERS.—The payment
standard for enhanced voucher assistance under sec-
tion 8(t) of the United States Housing Act of 1937
(42 U.S.C. 1437f(t)).
‘‘(2) MARK-TO-MARKET.—The rents derived
from comparable properties, for purposes of section
514(g) of the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42 U.S.C. 1437f
note).
‘‘(3) CONTRACT
RENEWAL.—The comparable
market rents for the market area, for purposes of
section 524(a)(4) of the Multifamily Assisted Hous-
ing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note).’’.
SEC. 104. ELIGIBLE INCLUSIONS FOR RENEWAL RENTS OF
PARTIALLY ASSISTED BUILDINGS.
Section 524(a)(4)(C) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) is amended by adding after the period at the
end the following: ‘‘Notwithstanding any other provision
of law, the Secretary shall include in such budget-based
cost increases costs relating to the project as a whole (in-
cluding costs incurred with respect to units not covered
by the contract for assistance), but only (I) if inclusion
of such costs is requested by the owner or purchaser of
the project, (II) if inclusion of such costs will permit cap-
ital repairs to the project or acquisition of the project by
a nonprofit organization, and (III) to the extent that in-
clusion of such costs (or a portion thereof) complies with
the requirement under clause (ii).’’.
SEC. 105. ELIGIBILITY OF RESTRUCTURING PROJECTS FOR
MISCELLANEOUS HOUSING INSURANCE.
Section 223(a)(7) of the National Housing Act (12
U.S.C. 1715n(a)(7)) is amended—
(1) by striking ‘‘under this Act: Provided, That
the principal’’ and inserting the following: ‘‘under
this Act, or an existing mortgage held by the Sec-
retary that is subject to a mortgage restructuring
and rental assistance sufficiency plan pursuant to
the Multifamily Assisted Housing Reform and Af-
fordability Act of 1997 (42 U.S.C. 1437f note), pro-
vided that—
‘‘(A) the principal’’;
(2) by striking ‘‘except that (A)’’ and inserting
‘‘except that (i)’’;
(3) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’;
(4) by striking ‘‘(C)’’ and inserting ‘‘(iii)’’;
(5) by striking ‘‘(D)’’ and inserting ‘‘(iv)’’;
(6) by striking ‘‘: Provided further, That a
mortgage’’ and inserting the following ‘‘; and
‘‘(B) a mortgage’’;
(7) by striking ‘‘or’’ at the end; and
(8) by adding at the end the following new sub-
paragraph:
‘‘(C) a mortgage that is subject to a mort-
gage restructuring and rental assistance suffi-
ciency plan pursuant to the Multifamily As-
sisted Housing Reform and Affordability Act of
1997 (42 U.S.C. 1437f note) and is refinanced
under this paragraph may have a term of not
more than 30 years; or’’.
SEC. 106. TECHNICAL CORRECTIONS.
(a) EXEMPTIONS FROM RESTRUCTURING.—
(1) IN GENERAL.—Section 514(h) of the Multi-
family Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note) is amended to
read as if the amendment made by section 531(c) of
Public Law 106–74 (113 Stat. 1116) were made to
‘‘Section 514(h)(1)’’ instead of ‘‘Section 514(h)’’.
(2) RETROACTIVE
EFFECT.—The amendment
made by paragraph (1) of this subsection is deemed
to have taken effect on the date of the enactment of
Public Law 106–74 (113 Stat. 1109).
(b) OTHER.—The Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f
note) is amended—
(1) in section 511(a)(12), by striking ‘‘this
Act’’ and inserting ‘‘this title’’;
(2) in section 513, by striking ‘‘this Act’’ each
place such term appears in subsections (a)(2)(I) and
(b)(3) and inserting ‘‘this title’’;
(3) in section 514(f)(3)(B), by inserting ‘‘Hous-
ing’’ after ‘‘Multifamily’’;
(4) in section 515(c)(1)(B), by inserting ‘‘or’’
after the semicolon;
(5) in section 517(b)—
(A) in each of paragraphs (1) through (6),
by capitalizing the first letter of the first word
that follows the paragraph heading;
(B) in each of paragraphs (1) through (5),
by striking the semicolon at the end and insert-
ing a period; and
(C) in paragraph (6), by striking ‘‘; and’’
at the end and inserting a period;
(6) in section 520(b), by striking ‘‘Banking
and’’; and
(7) in section 573(d)(2), by striking ‘‘Banking
and’’.
TITLE 
II—OFFICE 
OF 
MULTI-
FAMILY 
HOUSING 
ASSIST-
ANCE RESTRUCTURING
SEC. 201. REAUTHORIZATION OF OFFICE AND EXTENSION
OF PROGRAM.
Section 579 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f
note) is amended—
(1) by striking subsection (a) and inserting the
following new subsection:
‘‘(a) REPEALS.—
‘‘(1) MARK-TO-MARKET PROGRAM.—Subtitle A
(except for section 524) is repealed effective October
1, 2006.
‘‘(2) OMHAR.—Subtitle D (except for this sec-
tion) is repealed effective October 1, 2004.’’;
(2) in subsection (b), by striking ‘‘October 1,
2001’’ and inserting ‘‘October 1, 2006’’;
(3) in subsection (c), by striking ‘‘upon Sep-
tember 30, 2001’’ and inserting ‘‘at the end of Sep-
tember 30, 2004’’; and
(4) by striking subsection (d) and inserting the
following new subsection:
‘‘(d) TRANSFER OF AUTHORITY.—Effective upon the
repeal of subtitle D under subsection (a)(2) of this section,
all authority and responsibilities to administer the pro-
gram under subtitle A are transferred to the Secretary.’’.
SEC. 202. APPOINTMENT OF DIRECTOR.
(a) IN GENERAL.—Section 572 of the Multifamily
Assisted Housing Reform and Affordability Act of 1997
(42 U.S.C. 1437f note) is amended by striking subsection
(a) and inserting the following new subsection:
‘‘(a) APPOINTMENT.—The Office shall be under the
management of a Director, who shall be appointed by the
President from among individuals who are citizens of the
United States and have a demonstrated understanding of
financing and mortgage restructuring for affordable multi-
family housing.’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to the first Director of the Office
of Multifamily Housing Assistance Restructuring of the
Department of Housing and Urban Development ap-
pointed after the date of the enactment of this Act, and
any such Director appointed thereafter.
SEC. 203. VACANCY IN POSITION OF DIRECTOR.
(a) IN GENERAL.—Section 572 of the Multifamily
Assisted Housing Reform and Affordability Act of 1997
(42 U.S.C. 1437f note) is amended by striking subsection
(b) and inserting the following new subsection:
‘‘(b) VACANCY.—A vacancy in the position of Direc-
tor shall be filled by appointment in the manner provided
under subsection (a). The President shall make such an
appointment not later than 60 days after such position
first becomes vacant.’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to any vacancy in the position of
Director of the Office of Multifamily Housing Assistance
Restructuring of the Department of Housing and Urban
Development which occurs or exists after the date of the
enactment of this Act.
SEC. 204. OVERSIGHT BY FEDERAL HOUSING COMMIS-
SIONER.
(a) IN GENERAL.—Section 578 of the Multifamily
Assisted Housing Reform and Affordability Act of 1997
(42 U.S.C. 1437f note) is amended to read as follows:
‘‘SEC. 578. OVERSIGHT BY FEDERAL HOUSING COMMIS-
SIONER.
‘‘All authority and responsibilities assigned under
this subtitle to the Secretary shall be carried out through
the Assistant Secretary of the Department of Housing and
Urban Development who is the Federal Housing Commis-
sioner.’’.
(b) REPORT.—The second sentence of section 573(b)
of the Multifamily Assisted Housing Reform and Afford-
ability Act of 1997 (42 U.S.C. 1437f note) is amended
by striking ‘‘Secretary’’ and inserting ‘‘Assistant Sec-
retary of the Department of Housing and Urban Develop-
ment who is the Federal Housing Commissioner’’.
SEC. 205. LIMITATION ON SUBSEQUENT EMPLOYMENT.
Section 576 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f
note) is amended by striking ‘‘2-year period’’ and inserting
‘‘1-year period’’.
TITLE 
III—MISCELLANEOUS
HOUSING PROGRAM AMEND-
MENTS
SEC. 301. EXTENSION OF CDBG PUBLIC SERVICES CAP EX-
CEPTION.
Section 105(a)(8) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)(8)) is
amended by striking ‘‘through 2001’’ and inserting
‘‘through 2003’’.
SEC. 302. USE OF SECTION 8 ENHANCED VOUCHERS FOR
PREPAYMENTS.
Section 8(t)(2) of the United States Housing Act of
1937 (42 U.S.C. 1437f(t)(2) is amended by inserting after
‘‘insurance contract for the mortgage for such housing
project’’ the following: ‘‘(including any such mortgage pre-
payment during fiscal year 1996 or a fiscal year thereafter
or any insurance contract voluntary termination during
fiscal year 1996 or a fiscal year thereafter)’’.
SEC. 303. PREPAYMENT AND REFINANCING OF LOANS FOR
SECTION 202 SUPPORTIVE HOUSING.
(a) IN GENERAL.—Section 811 of the American
Homeownership and Economic Opportunity Act of 2000
(12 U.S.C. 1701q note) is amended by striking subsection
(e).
(b) EFFECTIVENESS UPON DATE OF ENACTMENT.—
The amendment made by subsection (a) of this section
shall take effect upon the date of the enactment of this
Act and the provisions of section 811 of the American
Homeownership and Economic Opportunity Act of 2000
(12 U.S.C. 1701q note), as amended by subsection (a) of
this section, shall apply as so amended upon such date
of enactment, notwithstanding—
(1) any authority of the Secretary of Housing
and Urban Development to issue regulations to im-
plement or carry out the amendments made by sub-
section (a) of this section or the provisions of section
811 of the American Homeownership and Economic
Opportunity Act of 2000 (12 U.S.C. 1701q note); or
(2) any failure of the Secretary of Housing and
Urban Development to issue any such regulations
authorized.
SEC. 304. TECHNICAL CORRECTION.
(a) IN GENERAL.—Section 101(a) of Public Law
100–77 (42 U.S.C. 11301 note) is amended to read as
if the amendment made by section 1 of Public Law 106–
400 (114 Stat. 1675) were made to ‘‘Section 101’’ instead
of ‘‘Section 1’’.
(b) RETROACTIVE EFFECT.—The amendment made
by subsection (a) of this section is deemed to have taken
effect immediately after the enactment of Public Law
106–400 (114 Stat. 1675).
Passed the House of Representatives September 24,
2001.
Attest:
Clerk.