of multifamily housing projects in the inventory of
the Department.
(b) PURPOSE.—The purpose of this Act, therefore,
is—
(1) to declare that an emergency exists with re-
spect to the disposition of multifamily housing
projects in the inventory of the Department;
(2) to provide for flexibility in disposing of such
projects by removing some of the statutory require-
ments that impede the sale of such projects;
(3) to encourage assistance for residents of
such projects through means other than rental as-
sistance under section 8 of the United States Hous-
ing Act of 1937; and
(4) to maintain, to the maximum extent pos-
sible, the low-income character of such projects while
disposing of such projects in an economical and ex-
peditious manner.
SEC. 3. EMERGENCY PROVISIONS.
(a) AUTHORITY.—During the period in which the
property disposition emergency under this Act is in effect
pursuant to section 4, the Secretary of Housing and
Urban Development may dispose of any multifamily hous-
ing project in accordance with the provisions this Act.
(b) APPLICABILITY
OF
SECTION
203 REQUIRE-
MENTS.—The provisions of section 203 of the Housing
and Community Development Amendments of 1978 shall
apply to the disposition of multifamily housing projects
under this Act, except to the extent that—
(1) any such provision is waived pursuant to
section 5 of this Act; or
(2) any such provision is inconsistent with any
provision of this Act, and then only to the extent of
such inconsistency.
The Secretary may determine whether inconsistencies re-
ferred to in paragraph (2) exist.
(c) REQUIREMENTS.—In disposing of any subsidized
or formerly subsidized multifamily housing project under
this Act, the Secretary shall, to the extent that budget
authority is available—
(1) enter into—
(A) a nonrenewable contract under section
8 of the United States Housing Act of 1937
having a term of not less than 60 months and
not more than 180 months that provides
project-based assistance for units in the project;
or
(B) annual contributions contracts with
the appropriate public housing agency to pro-
vide tenant-based rental assistance under sec-
tion 8 of the United States Housing Act of
1937 for a total term, including renewals, of
not more than 180 months; and
(2) provide the assistance under paragraph (1)
on behalf of all of the very low-income families occu-
pying the project on the date the project is sold by
the Secretary (or such other prior date as the Sec-
retary may determine appropriate), except that the
Secretary may in addition provide such assistance to
other eligible low-income families occupying such a
project on such date if the Secretary determines that
such assistance is appropriate under market condi-
tions in the area in which the project is located.
(d) ALTERNATIVE REQUIREMENTS.—In lieu of, or in
addition to, the actions required under subsection (c), the
Secretary shall—
(1) seek to ensure, through means other than
assistance under such section 8, that rent charges
for units in the project remain affordable (as such
term is defined by the Secretary) for a reasonable
period of time determined by the Secretary;
(2) encourage the provision of assistance from
non-Federal sources to maintain the affordability of
rent charges for units in the project; and
(3) encourage the sale of the project to a local
nonprofit organization.
(e) UNSUBSIDIZED PROJECTS.—In connection with
the disposition under this Act of a multifamily housing
project that is not a subsidized or formerly subsidized
project, the Secretary is not required to provide assistance
under section 8 of the United States Housing Act of 1937,
but the Secretary may take any of the actions specified
in subsection (d).
(f) ADDITIONAL ASSISTANCE.—In order to facilitate
the disposition of a multifamily housing project under this
Act, the Secretary may provide project-based assistance
under section 8 of the United States Housing Act of 1937
with respect to units for which such assistance is not re-
quired by this Act.
(g) NONRENTAL USES OF PROJECTS.—In disposing
of any multifamily housing project under this Act, the Sec-
retary may make the project or units in project available—
(1) for uses related to low-income housing other
than rental or cooperative use, such as low-income
homeownership opportunities, shelters for the home-
less, and office space for resident or housing-related
social services providers; and
(2) for any other use, if the Secretary, in con-
sultation with the local area-wide governing body,
determines that such use will assist efforts to reduce
the geographic concentration of low-income housing
opportunities.
SEC. 4. DURATION OF EMERGENCY.
A property disposition emergency under this Act shall
be in effect during the period that—
(1) begins upon the enactment of this Act; and
(2) ends upon the conclusion of the third fiscal
year that begins after the date of the enactment of
this Act.
SEC. 5. WAIVER OF DISPOSITION PLAN REQUIREMENTS.
The Secretary may waive any of the provisions of sec-
tion 203(e) of the Housing and Community Development
Amendments of 1978 with respect to the disposition of
any multifamily housing project under this Act, as the
Secretary determines appropriate to expedite such disposi-
tion of multifamily housing projects.
SEC. 6. DEFINITIONS.
For purposes of this Act:
(1) MULTIFAMILY
HOUSING
PROJECT.—The
term ‘‘multifamily housing project’’ has the meaning
given the term in section 203(i) of the Housing and
Community Development Amendments of 1978.
(2) SUBSIDIZED PROJECT AND FORMERLY SUB-
SIDIZED PROJECT.—The terms ‘‘subsidized project’’
and ‘‘formerly subsidized project’’ have the meanings
given the terms in section 203(i)(2) of the Housing
and Community Development Amendments of 1978,
except that, notwithstanding subparagraph (E) of
such section, such terms include multifamily housing
projects receiving project-based housing assistance
payments under section 8 of the United States
Housing Act of 1937 or under section 23 of the
United States Housing Act of 1937 (as in effect be-
fore January 1, 1975) for 50 percent or fewer of the
units in the project immediately prior to the assign-
ment of the mortgage on such project to, or acquisi-
tion of such mortgage by, the Secretary.
(3) LOW-INCOME
AND
VERY
LOW-INCOME.—
The terms ‘‘low-income’’ and ‘‘very low-income’’
have the meanings given such terms in section 3(b)
of the United States Housing Act of 1937.
SEC. 7. CONFORMING AMENDMENT.
Section 203(i)(2)(E) of the Housing and Community
Development Amendments of 1978 (12 U.S.C. 1701z–
11(i)(2)(E)) is amended by inserting ‘‘tenant-based’’ be-
fore ‘‘certificates’’.
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