H. R. 2684—68
United States Housing Act of 1937 (as in effect
before October 1, 1983);
‘‘(II) the property disposition program under
section 8(b) of the United States Housing Act of
1937;
‘‘(III) the moderate rehabilitation program
under section 8(e)(2) of the United States Housing
Act of 1937 (as in effect before October 1, 1991);
‘‘(IV) the loan management assistance program
under section 8 of the United States Housing Act
of 1937;
‘‘(V) section 23 of the United States Housing
Act of 1937 (as in effect before January 1, 1975);
‘‘(VI) the rent supplement program under sec-
tion 101 of the Housing and Urban Development
Act of 1965; or
‘‘(VII) section 8 of the United States Housing
Act of 1937, following conversion from assistance
under section 101 of the Housing and Urban
Development Act of 1965,
which contract will (under its own terms) expire during
the period consisting of fiscal years 2000 through 2004;
and
‘‘(iii) is not housing for which residents are eligible
for enhanced voucher assistance as provided, pursuant
to the ‘Preserving Existing Housing Investment’
account in the Departments of Veterans Affairs and
Housing and Urban Development, and Independent
Agencies Appropriations Act, 1997 (Public Law 104–
204; 110 Stat. 2884) or any other subsequently enacted
provision of law, in lieu of any benefits under section
223 of the Low-Income Housing Preservation and Resi-
dent Homeownership Act of 1990 (12 U.S.C. 4113).
‘‘(4) 
AUTHORIZATION
OF
APPROPRIATIONS.—There 
are
authorized to be appropriated for each of fiscal years 2000,
2001, 2002, 2003, and 2004 such sums as may be necessary
for enhanced voucher assistance under this subsection.
‘‘(e) 
CONTRACTUAL
COMMITMENTS
UNDER
PRESERVATION
LAWS.—Except as provided in subsection (a)(2) and notwithstanding
any other provision of this subtitle, the following shall apply:
‘‘(1) PRESERVATION PROJECTS.—Upon expiration of a con-
tract for assistance under section 8 for a project that is 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-Income 
Housing 
Preservation 
and 
Resident
Homeownership Act of 1990 (12 U.S.C. 4101 et seq.), to the
extent amounts are specifically made available in appropriation
Acts, the Secretary shall provide to the owner benefits com-
parable to those provided under such plan of action, including
distributions, rent increase procedures, and duration of low-
income affordability restrictions. This paragraph shall apply
to projects with contracts expiring before, on, or after the date
of the enactment of this section.
‘‘(2) DEMONSTRATION PROJECTS.—
‘‘(A) IN GENERAL.—Upon expiration of a contract for
assistance under section 8 for a project entered into pursu-
ant to any authority specified in subparagraph (B) for
H. R. 2684—69
which the Secretary determines that debt restructuring
is inappropriate, the Secretary shall, at the request of
the owner of the project and to the extent sufficient
amounts are made available in appropriation Acts, provide
benefits to the owner comparable to those provided under
such contract, including annual distributions, rent increase
procedures, and duration of low-income affordability restric-
tions. This paragraph shall apply to projects with contracts
expiring before, on, or after the date of the enactment
of this section.
‘‘(B) 
DEMONSTRATION
PROGRAMS.—The 
authority
specified in this subparagraph is the authority under—
‘‘(i) section 210 of the Departments of Veterans
Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (Public
Law 104–134; 110 Stat. 1321–285; 42 U.S.C. 1437f
note);
‘‘(ii) section 212 of the Departments of Veterans
Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1997 (Public
Law 104–204; 110 Stat. 2897; 42 U.S.C. 1437f note);
and
‘‘(iii) either of such sections, pursuant to any provi-
sion of this title.
‘‘(f ) PREEMPTION
OF
CONFLICTING
STATE
LAWS
LIMITING
DISTRIBUTIONS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
no State or political subdivision of a State may establish, con-
tinue in effect, or enforce any law or regulation that limits
or restricts, to an amount that is less than the amount provided
for under the regulations of the Secretary establishing allowable
project distributions to provide a return on investment, the
amount of surplus funds accruing after the date of the enact-
ment of this section that may be distributed from any multi-
family housing project assisted under a contract for rental
assistance renewed under any provision of this section (except
subsection (b)) to the owner of the project.
‘‘(2) EXCEPTION AND WAIVER.—Paragraph (1) shall not apply
to any law or regulation to the extent such law or regulation
applies to—
‘‘(A) a State-financed multifamily housing project; or
‘‘(B) a multifamily housing project for which the owner
has elected to waive the applicability of paragraph (1).
‘‘(3) TREATMENT OF LOW-INCOME USE RESTRICTIONS.—This
subsection may not be construed to provide for, allow, or result
in the release or termination, for any project, of any low-
or moderate-income use restrictions that can not be eliminated
by unilateral action of the owner of the project.
‘‘(g) APPLICABILITY.—Except to the extent otherwise specifically
provided in this section, this section shall apply with respect to
any multifamily housing project having a contract for project-based
assistance under section 8 that terminates or expires during fiscal
year 2000 or thereafter.’’.
(b) DEFINITION OF ELIGIBLE MULTIFAMILY HOUSING PROJECT.—
Section 512(2) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by
inserting after and below subparagraph (C) the following:
H. R. 2684—70
‘‘Such term does not include any project with an expiring con-
tract described in paragraph (1) or (2) of section 524(e).’’.
(c) PROJECTS EXEMPTED FROM RESTRUCTURING AGREEMENTS.—
Section 514(h) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by
inserting before the semicolon at the end the following: ‘‘and the
financing involves mortgage insurance under the National Housing
Act, such that the implementation of a mortgage restructuring
and rental assistance sufficiency plan under this subtitle is in
conflict with applicable law or agreements governing such
financing’’.
(d) CONFORMING AMENDMENTS.—Section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) is amended—
(1) by designating as subsection (v) the sentence added
by section 405(c) of The Balanced Budget Downpayment Act,
I (Public Law 104–99; 110 Stat. 44); and
(2) by striking subsection (w).
SEC. 532. SECTION 236 ASSISTANCE.
(a) CONTINUED RECEIPT OF SUBSIDIES UPON REFINANCING.—
Section 236(e) of the National Housing Act (12 U.S.C. 1715z–1(e))
is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(e)’’; and
(2) by adding at the end the following new paragraph:
‘‘(2) A project for which interest reduction payments are made
under this section and for which the mortgage on the project has
been refinanced shall continue to receive the interest reduction
payments under this section under the terms of the contract for
such payments, but only if the project owner enters into such
binding commitments as the Secretary may require (which shall
be applicable to any subsequent owner) to ensure that the owner
will continue to operate the project in accordance with all low-
income affordability restrictions for the project in connection with
the Federal assistance for the project for a period having a duration
that is not less than the term for which such interest reduction
payments are made plus an additional 5 years.’’.
(b) RETENTION
OF EXCESS INCOME.—Section 236(g) of the
National Housing Act (12 U.S.C. 1715z–1(g)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(g)’’;
(2) by striking the last sentence; and
(3) by adding at the end the following new paragraphs:
‘‘(2) Subject to paragraph (3) and notwithstanding any other
requirements of this subsection, a project owner may retain some
or all of such excess charges for project use if authorized by the
Secretary. Such excess charges shall be used for the project and
upon terms and conditions established by the Secretary, unless
the Secretary permits the owner to retain funds for non-project
use after a determination that the project is well-maintained
housing in good condition and that the owner has not engaged
in material adverse financial or managerial actions or omissions
as described in section 516 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997. In connection with the reten-
tion of funds for non-project use, the Secretary may require the
project owner to enter into a binding commitment (which shall
be applicable to any subsequent owner) to ensure that the owner
will continue to operate the project in accordance with all low-
income affordability restrictions for the project in connection with
H. R. 2684—71
the Federal assistance for the project for a period having a duration
of not less than the term of the existing affordability restrictions
plus an additional 5 years.
‘‘(3) The authority under paragraph (2) to retain and use excess
charges shall apply—
‘‘(A) during fiscal year 2000, to all project owners
collecting such excess charges; and
‘‘(B) during fiscal year 2001 and thereafter—
‘‘(i) to any owner of: (I) a project with a mortgage
insured under this section; (II) a project with a mort-
gage formerly insured under this section if such mort-
gage is held by the Secretary and the owner of such
project is current with respect to the mortgage obliga-
tion; or (III) a project previously assisted under sub-
section (b) but without a mortgage insured under this
section if the project was insured under section 207
of this Act before July 30, 1998, pursuant to section
223(f ) of this Act and assisted under subsection (b);
and
‘‘(ii) to other project owners not referred to in
clause (i) who collect such excess charges, but only
to the extent that such retention and use is approved
in advance in an appropriation Act.’’.
(c) PREVIOUSLY OWED EXCESS INCOME.—Section 236(g) of the
National Housing Act (12 U.S.C. 1715z–1(g)), as amended by sub-
section (b) of this section, is further amended by adding at the
end the following new paragraph:
‘‘(4) The Secretary shall not withhold approval of the retention
by the owner of such excess charges because of the existence of
unpaid excess charges if such unpaid amount is being remitted
to the Secretary over a period of time in accordance with a workout
agreement with the Secretary, unless the Secretary determines
that the owner is in violation of the workout agreement.’’.
(d) FLEXIBILITY REGARDING BASIC RENTS AND MARKET RENTS.—
Section 236(f ) of the National Housing Act (12 U.S.C. 1715z–1(f )(1))
is amended by striking the subsection designation and all that
follows through the end of paragraph (1) and inserting the following:
‘‘(f )(1)(A)(i) For each dwelling unit there shall be established,
with the approval of the Secretary, a basic rental charge and
fair market rental charge.
‘‘(ii) The basic rental charge shall be—
‘‘(I) the amount needed to operate the project with pay-
ments of principal and interest due under a mortgage bearing
interest at the rate of 1 percent per annum; or
‘‘(II) an amount greater than that determined under clause
(ii)(I), but not greater than the market rent for a comparable
unassisted unit, reduced by the value of the interest reduction
payments subsidy.
‘‘(iii) The fair market rental charge shall be—
‘‘(I) the amount needed to operate the project with pay-
ments of principal, interest, and mortgage insurance premium
which the mortgagor is obligated to pay under the mortgage
covering the project; or
‘‘(II) an amount greater than that determined under clause
(iii)(I), but not greater than the market rent for a comparable
unassisted unit.