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(8) 62 percent of eligible low-income households 
receive no housing assistance, and approximately 
2,000,000 low-income households remain on waiting 
lists for affordable housing; 
(9) the shortage of affordable housing dwelling 
units results in low-income households that are not 
able to acquire low-cost rental units paying large 
proportions of their incomes for rent; and 
(10) 14,000,000 renters pay more than 30 per-
cent of their incomes for rent and utilities, and 
7,000,000 renters pay 50 percent or more of their 
incomes for rent and utilities. 
(b) PURPOSES.—The purposes of this subtitle are—
(1) to promote the preservation of affordable 
housing units by providing matching grants to 
States that have developed and funded programs for 
the preservation of privately owned housing that is 
affordable to low-income families and persons and 
was produced for such purpose with Federal assist-
ance; 
(2) to minimize the involuntary displacement of 
tenants who are currently residing in such housing, 
many of whom are elderly or disabled persons; and 
(3) to continue the partnerships among the 
Federal Government, State and local governments,
735
and the private sector in operating and assisting 
housing that is affordable to low-income Americans. 
SEC. 7203. DEFINITIONS. 
In this subtitle: 
(1) LOW-INCOME
AFFORDABILITY
RESTRIC-
TION.—The term ‘‘low-income affordability restric-
tion’’ means, with respect to a housing project, any 
limitation imposed by regulation or regulatory agree-
ment on rents for tenants of the project, rent con-
tributions for tenants of the project, or income-eligi-
bility for occupancy in the project. 
(2) PROJECT-BASED
ASSISTANCE.—The term 
‘‘project-based assistance’’ has the same meaning as 
in section 16(c) of the United States Housing Act 
of 1937 (42 U.S.C. 1437n(c)), except that the term 
includes assistance under any successor program to 
any program referred to in that section. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(4) STATE.—The term ‘‘State’’ means each of 
the several States of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, the 
Commonwealth of the Northern Mariana Islands, 
Guam, the Virgin Islands, American Samoa, and
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any other territory or possession of the United 
States. 
SEC. 7204. AUTHORITY. 
The Secretary shall, to the extent that amounts are 
made available pursuant to section 7211, make grants 
under this subtitle to States for low-income housing pres-
ervation. 
SEC. 7205. APPLICATIONS. 
(a) IN GENERAL.—Each State that seeks a grant 
under this subtitle shall submit an application to the Sec-
retary (through an appropriate State agency) at such 
time, in such manner, and accompanied by such informa-
tion as the Secretary may reasonably require. 
(b) CONTENTS.—Each application submitted pursu-
ant to subsection (a) shall contain any information and 
certifications necessary for the Secretary to determine 
whether the State is eligible to receive a grant under this 
subtitle. 
SEC. 7206. USE OF GRANTS. 
(a) IN GENERAL.—Amounts from grants made under 
this subtitle may be used by States only for assistance for 
acquisition, preservation incentives, operating costs, and 
capital expenditures for a housing project that meets the 
requirements of subsection (b), (c), or (d).
737
(b) PROJECTS WITH HUD-INSURED MORTGAGES.—
A project meets the requirements of this subsection only 
if—
(1) the project is financed by a loan or mort-
gage that is—
(A) insured or held by the Secretary under 
section 221(d)(3) of the National Housing Act 
(12 U.S.C. 1715l(d)(3)) and the project is re-
ceiving loan management assistance under sec-
tion 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f) due to a conversion 
from section 101 of the Housing and Urban 
Development Act of 1965 (12 U.S.C. 1701s); 
(B) insured or held by the Secretary and 
bears interest at a rate determined under the 
proviso of section 221(d)(5) of the National 
Housing Act (12 U.S.C. 1715l(d)(5)); 
(C) insured, assisted, or held by the Sec-
retary or a State or State agency under section 
236 of the National Housing Act (12 U.S.C. 
1715z–1); or 
(D) held by the Secretary and formerly in-
sured under a program referred to in subpara-
graph (A), (B), or (C);
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(2) with respect to the mortgage referred to in 
paragraph (1), the project is subject to an uncondi-
tional waiver of—
(A) all rights to any prepayment of the 
mortgage; and 
(B) all rights to any voluntary termination 
of the mortgage insurance contract for the 
mortgage; and 
(3) the owner of the project has entered into 
binding commitments (applicable to any subsequent 
owner) to extend all low-income affordability restric-
tions for the project, including any such restrictions 
imposed because of any contract for project-based 
assistance for the project. 
(c) PROJECTS WITH SECTION 8 PROJECT-BASED AS-
SISTANCE.—A project meets the requirements of this sub-
section only if—
(1) the project is subject to a contract for 
project-based assistance; and 
(2) the owner of the project has entered into 
binding commitments (applicable to any subsequent 
owner)—
(A) to extend the project-based assistance 
for the maximum period allowable under law