H. R. 7148—239 
2026 and 2027, the Secretary of Housing and Urban Development 
may authorize the transfer of some or all project-based assistance, 
debt held or insured by the Secretary and statutorily required 
low-income and very low-income use restrictions if any, associated 
with one or more multifamily housing project or projects to another 
multifamily housing project or projects. 
(b) PHASED TRANSFERS.—Transfers of project-based assistance 
under this section may be done in phases to accommodate the 
financing and other requirements related to rehabilitating or con-
structing the project or projects to which the assistance is trans-
ferred, to ensure that such project or projects meet the standards 
under subsection (c). 
(c) The transfer authorized in subsection (a) is subject to the 
following conditions: 
(1) NUMBER AND BEDROOM SIZE OF UNITS.— 
(A) For occupied units in the transferring project: The 
number of low-income and very low-income units and the 
configuration (i.e., bedroom size) provided by the transfer-
ring project shall be no less than when transferred to 
the receiving project or projects and the net dollar amount 
of Federal assistance provided to the transferring project 
shall remain the same in the receiving project or projects. 
The Secretary, upon determination of good cause, including 
a determination that there will be no loss of assistance 
to currently assisted households, may authorize a different 
number of such units or a change in such configuration, 
or both, at the receiving project or projects in the event 
there is a transfer of use restrictions without an associated 
transfer of project-based assistance to the receiving project. 
The Secretary shall publish a notice in the Federal Register 
for public comment containing the criteria for determina-
tions of good cause no less than 60 days before the effective 
date of such notice. 
(B) For unoccupied units in the transferring project: 
The Secretary may authorize a reduction in the number 
of dwelling units in the receiving project or projects to 
allow for a reconfiguration of bedroom sizes to meet current 
market demands, as determined by the Secretary and pro-
vided there is no increase in the project-based assistance 
budget authority. 
(2) The transferring project shall, as determined by the 
Secretary, be either physically obsolete or economically non-
viable, or be reasonably expected to become economically non-
viable when complying with State or Federal requirements 
for community integration and reduced concentration of individ-
uals with disabilities. 
(3) The receiving project or projects shall meet or exceed 
applicable physical standards established by the Secretary. 
(4) The owner or mortgagor of the transferring project 
shall notify and consult with the tenants residing in the 
transferring project and provide a certification of approval by 
all appropriate local governmental officials. 
(5) The tenants of the transferring project who remain 
eligible for assistance to be provided by the receiving project 
or projects shall not be required to vacate their units in the 
transferring project or projects until new units in the receiving 
project are available for occupancy.
H. R. 7148—240 
(6) The Secretary determines that this transfer is in the 
best interest of the tenants. 
(7) If either the transferring project or the receiving project 
or projects meets the condition specified in subsection (d)(2)(A), 
any lien on the receiving project resulting from additional 
financing obtained by the owner shall be subordinate to any 
FHA-insured mortgage lien transferred to, or placed on, such 
project by the Secretary, except that the Secretary may waive 
this requirement upon determination that such a waiver is 
necessary to facilitate the financing of acquisition, construction, 
and/or rehabilitation of the receiving project or projects. 
(8) If the transferring project meets the requirements of 
subsection (d)(2), the owner or mortgagor of the receiving 
project or projects shall execute and record either a continuation 
of the existing use agreement or a new use agreement for 
the project where, in either case, any use restrictions in such 
agreement are of no lesser duration than the existing use 
restrictions. 
(9) The transfer does not increase the cost (as defined 
in section 502 of the Congressional Budget Act of 1974 (2 
U.S.C. 661a)) of any FHA-insured mortgage, except to the 
extent that appropriations are provided in advance for the 
amount of any such increased cost. 
(d) For purposes of this section— 
(1) the terms ‘‘low-income’’ and ‘‘very low-income’’ shall 
have the meanings provided by the statute and/or regulations 
governing the program under which the project is insured or 
assisted; 
(2) the term ‘‘multifamily housing project’’ means housing 
that meets one of the following conditions— 
(A) housing that is subject to a mortgage insured under 
the National Housing Act; 
(B) housing that has project-based assistance attached 
to the structure including projects undergoing mark to 
market debt restructuring under the Multifamily Assisted 
Housing Reform and Affordability Housing Act; 
(C) housing that is assisted under section 202 of the 
Housing Act of 1959 (12 U.S.C. 1701q); 
(D) housing that is assisted under section 202 of the 
Housing Act of 1959 (12 U.S.C. 1701q), as such section 
existed before the enactment of the Cranston-Gonzales 
National Affordable Housing Act; 
(E) housing that is assisted under section 811 of the 
Cranston-Gonzales National Affordable Housing Act (42 
U.S.C. 8013); or 
(F) housing or vacant land that is subject to a use 
agreement; 
(3) the term ‘‘project-based assistance’’ means— 
(A) assistance provided under section 8(b) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(b)); 
(B) assistance for housing constructed or substantially 
rehabilitated pursuant to assistance provided under section 
8(b)(2) of such Act (as such section existed immediately 
before October 1, 1983); 
(C) rent supplement payments under section 101 of 
the Housing and Urban Development Act of 1965 (12 U.S.C. 
1701s);
H. R. 7148—241 
(D) interest reduction payments under section 236 and/ 
or additional assistance payments under section 236(f)(2) 
of the National Housing Act (12 U.S.C. 1715z–1); 
(E) assistance payments made under section 202(c)(2) 
of the Housing Act of 1959 (12 U.S.C. 1701q(c)(2)); and 
(F) assistance payments made under section 811(d)(2) 
of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 8013(d)(2)); 
(4) the term ‘‘receiving project or projects’’ means the multi-
family housing project or projects to which some or all of 
the project-based assistance, debt, and statutorily required low- 
income and very low-income use restrictions are to be trans-
ferred; 
(5) the term ‘‘transferring project’’ means the multifamily 
housing project which is transferring some or all of the project- 
based assistance, debt, and the statutorily required low-income 
and very low-income use restrictions to the receiving project 
or projects; and 
(6) the term ‘‘Secretary’’ means the Secretary of Housing 
and Urban Development. 
(e) RESEARCH REPORT.—The Secretary shall conduct an evalua-
tion of the transfer authority under this section, including the 
effect of such transfers on the operational efficiency, contract rents, 
physical and financial conditions, and long-term preservation of 
the affected properties. 
SEC. 209. No assistance shall be provided under section 8 
of the United States Housing Act of 1937 (42 U.S.C. 1437f) to 
any individual who— 
(1) is enrolled as a student at an institution of higher 
education (as defined under section 102 of the Higher Education 
Act of 1965 (20 U.S.C. 1002)); 
(2) is under 24 years of age; 
(3) is not a veteran; 
(4) is unmarried; 
(5) does not have a dependent child; 
(6) is not a person with disabilities, as such term is defined 
in section 3(b)(3)(E) of the United States Housing Act of 1937 
(42 U.S.C. 1437a(b)(3)(E)) and was not receiving assistance 
under such section 8 as of November 30, 2005; 
(7) is not a youth who left foster care at age 14 or older 
and is at risk of becoming homeless; and 
(8) is not otherwise individually eligible, or has parents 
who, individually or jointly, are not eligible, to receive assist-
ance under section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f). 
SEC. 210. The funds made available for Native Alaskans under 
paragraph (1) under the heading ‘‘Native American Programs’’ in 
title II of this Act shall be allocated to the same Native Alaskan 
housing block grant recipients that received funds in fiscal year 
2005, and only such recipients shall be eligible to apply for funds 
made available under paragraph (2) of such heading. 
SEC. 211. Notwithstanding any other provision of law, in fiscal 
year 2026, in managing and disposing of any multifamily property 
that is owned or has a mortgage held by the Secretary of Housing 
and Urban Development, and during the process of foreclosure 
on any property with a contract for rental assistance payments 
under section 8 of the United States Housing Act of 1937 (42
H. R. 7148—242 
U.S.C. 1437f) or any other Federal programs, the Secretary shall 
maintain any rental assistance payments under section 8 of the 
United States Housing Act of 1937 and other programs that are 
attached to any dwelling units in the property. To the extent 
the Secretary determines, in consultation with the tenants and 
the local government that such a multifamily property owned or 
having a mortgage held by the Secretary is not feasible for continued 
rental assistance payments under such section 8 or other programs, 
based on consideration of (1) the costs of rehabilitating and oper-
ating the property and all available Federal, State, and local 
resources, including rent adjustments under section 524 of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 
(in this section ‘‘MAHRAA’’) (42 U.S.C. 1437f note), and (2) environ-
mental conditions that cannot be remedied in a cost-effective 
fashion, the Secretary may, in consultation with the tenants of 
that property, contract for project-based rental assistance payments 
with an owner or owners of other existing housing properties, 
or provide other rental assistance. The Secretary shall also take 
appropriate steps to ensure that project-based contracts remain 
in effect prior to foreclosure, subject to the exercise of contractual 
abatement remedies to assist relocation of tenants for imminent 
major threats to health and safety after written notice to and 
informed consent of the affected tenants and use of other available 
remedies, such as partial abatements or receivership. After disposi-
tion of any multifamily property described in this section, the con-
tract and allowable rent levels on such properties shall be subject 
to the requirements under section 524 of MAHRAA. 
SEC. 212. Public housing agencies that own and operate 400 
or fewer public housing units may elect to be exempt from any 
asset management requirement imposed by the Secretary in connec-
tion with the operating fund rule: Provided, That an agency seeking 
a discontinuance of a reduction of subsidy under the operating 
fund formula shall not be exempt from asset management require-
ments. 
SEC. 213. With respect to the use of amounts provided in 
this Act and in future Acts for the operation, capital improvement, 
and management of public housing as authorized by sections 9(d) 
and 9(e) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(d), (e)), the Secretary shall not impose any requirement or 
guideline relating to asset management that restricts or limits 
in any way the use of capital funds for central office costs pursuant 
to paragraph (1) or (2) of section 9(g) of the United States Housing 
Act of 1937 (42 U.S.C. 1437g(g)(1), (2)): Provided, That a public 
housing agency may not use capital funds authorized under section 
9(d) for activities that are eligible under section 9(e) for assistance 
with amounts from the operating fund in excess of the amounts 
permitted under paragraph (1) or (2) of section 9(g). 
SEC. 214. No official or employee of the Department of Housing 
and Urban Development shall be designated as an allotment holder 
unless the Office of the Chief Financial Officer has determined 
that such allotment holder has implemented an adequate system 
of funds control and has received training in funds control proce-
dures and directives. The Chief Financial Officer shall ensure that 
there is a trained allotment holder for each HUD appropriation 
under the accounts ‘‘Executive Offices’’, ‘‘Administrative Support 
Offices’’, ‘‘Program Offices’’, ‘‘Government National Mortgage