I 
112TH CONGRESS 
2D SESSION 
H. R. 4253 
To amend the Low-Income Housing Preservation and Resident 
Homeownership Act of 1990. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 22, 2012 
Mr. PAULSEN (for himself and Mr. GRIMM) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To amend the Low-Income Housing Preservation and 
Resident Homeownership Act of 1990. 
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 ‘‘Preservation Enhance-
ment and Savings Opportunity Act of 2012’’. 
SEC. 2. DISTRIBUTIONS AND RESIDUAL RECEIPTS. 
Section 222 of the Low-Income Housing Preservation 
and Resident Homeownership Act of 1990 (12 U.S.C. 
4112) is amended by adding at the end the following new 
subsection: 
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‘‘(e) DISTRIBUTION
AND RESIDUAL RECEIPTS.— 
After the date of the enactment of the Preservation En-
hancement and Savings Opportunity Act of 2012, the 
owner of a property subject to a plan of action or use 
agreement pursuant to this section shall, notwithstanding 
any conflicting provision in such use agreement or a plan 
of action, be entitled to distribute— 
‘‘(1) annually, all surplus cash generated by the 
property, and 
‘‘(2) upon request made to the Secretary, any 
funds accumulated in a residual receipts account; 
but only if such owner is in material compliance with such 
use agreement.’’. 
SEC. 3. FUTURE REFINANCING. 
Section 214 of the Low-Income Housing Preservation 
and Resident Homeownership Act of 1990 (12 U.S.C. 
4104) is amended by adding at the end the following new 
subsection: 
‘‘(c) FUTURE REFINANCING.—Neither this section, 
nor any plan of action or use agreement implementing this 
section, shall restrict an owner from obtaining a new loan 
or refinancing a loan secured by the project, or from dis-
tributing the proceeds of such a loan, except that the 
treatment of such a loan for purposes of budget-based 
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project rents shall be within the discretion of the Sec-
retary.’’. 
SEC. 4. DEFEASANCE OF DIRECT CAPITAL LOANS. 
Section 219 of the Low-Income Housing Preservation 
and Resident Homeownership Act of 1990 (12 U.S.C. 
4109) is amended by adding at the end the following new 
subsection: 
‘‘(c) DEFEASANCE OF DIRECT CAPITAL LOANS.—An 
owner who received a direct capital loan pursuant to the 
Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations 
Act, 1997 (Public Law 104–204) shall, upon 30 days writ-
ten notice to the Secretary and payment to the Secretary 
of the present value of the loan as determined under a 
discount rate equal to the Office of Management and 
Budget’s nominal Treasury rate of appropriate duration 
based upon the maturity of the loan, have the right to 
defease such loan or to obtain the release of the instru-
ment securing such loan.’’. 
SEC. 5. RENT-SETTING. 
The first sentence of paragraph (1) of section 524(e) 
of the Multifamily Assisted Housing Reform and Afford-
ability Act of 1997 (42 U.S.C. 1437f note) is amended— 
(1) by inserting ‘‘at least’’ after ‘‘benefits’’; and 
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(2) by inserting before the period at the end the 
following: ‘‘, but the owner may request a rent in-
crease pursuant to any provision of this section’’. 
Æ 
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