I 
109TH CONGRESS 
2D SESSION 
H. R. 5039 
To establish a program to revitalize rural multifamily housing assisted under 
the Housing Act of 1949. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2006 
Mr. DAVIS of Kentucky (for himself, Mr. FRANK of Massachusetts, Mr. NEY, 
Mr. DAVIS of Alabama, Mr. GARY G. MILLER of California, Mr. 
HINOJOSA, and Mr. RENZI) introduced the following bill; which was re-
ferred to the Committee on Financial Services 
A BILL 
To establish a program to revitalize rural multifamily 
housing assisted under the Housing Act of 1949. 
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 ‘‘Saving America’s 
Rural Housing Act of 2006’’. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) section 502(c) of the Housing Act of 1949 
restricts the rights of certain owners of projects for 
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which loans were made or insured under section 515 
of such Act to prepay such loans; 
(2) expensive litigation against the Department 
of Agriculture has cost the taxpayers of the United 
States millions of dollars to date, funds that would 
be better spent preserving affordable multifamily 
housing; 
(3) if such section 502(c) is partially repealed 
and the prepayment restrictions are eliminated for 
multifamily housing loans made before 1989 under 
section 515, it is expected, according to a report, 
that approximately 10 percent of the portfolio of 
such loans would be prepaid and those projects 
would leave the program; 
(4) the average age of a multifamily housing 
project with a section 515 loan is 28 years, and 
therefore much of the portfolio of such projects is 
aging and in need of revitalization, while the need 
for affordable rural housing is increasing; 
(5) section 515 projects house some of the 
poorest families in rural America, with almost 60 
percent of the units occupied by senior citizens or 
persons with disabilities and an average annual 
household income among all occupants of approxi-
mately $9,000; 
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(6) in many small towns and communities, rent-
al housing financed by direct loans under section 
515 is the only decent, affordable rental housing 
available.; and 
(7) consequently, any revitalization or disposi-
tion of this portfolio, which houses nearly 500,000 
low-income families and seniors, should be handled 
with great care. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to authorize the Secretary of Agriculture to 
carry out a program that encourages, to the extent 
practicable, the retention of section 515 housing 
projects developments for long-term use and the re-
pair and preservation of such properties, and en-
sures that the minimum number of residents are dis-
placed; 
(2) to repeal a portion of section 502(c) of the 
Housing Act of 1949 to avoid further costly litiga-
tion against the Department of Agriculture; 
(3) to preserve the availability of affordable 
rural housing by providing a voluntary mechanism 
for owners of multifamily rural housing projects with 
loans under section 515 to enter into loan restruc-
turing agreements with the Secretary to provide cap-
ital for revitalization activities; and 
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(4) to provide for affordable rents for tenants 
who live in such projects that are revitalized under 
this Act and to protect tenants who live in such 
projects for which the loan is prepaid. 
SEC. 3. REVITALIZATION OF MULTIFAMILY HOUSING. 
(a) REVITALIZATION PROGRAM.—Title V of the 
Housing Act of 1949 (42 U.S.C. 1471 et seq.) is amended 
by adding at the end the following new section: 
‘‘SEC. 544. REVITALIZATION AND TENANT PROTECTION 
VOUCHERS. 
‘‘(a) PURPOSE.—The purposes of this section are— 
‘‘(1) to protect tenants who live in multifamily 
housing projects that are subsidized under this title 
and, in the case of prepayments of loans under sec-
tion 515, to protect tenants that are displaced when 
the projects cease being eligible projects; 
‘‘(2) to strengthen the long-term viability of eli-
gible projects; 
‘‘(3) to promote the revitalization of rural mul-
tifamily housing projects; and 
‘‘(4) to accomplish such several purposes— 
‘‘(A) by providing a voluntary mechanism 
for project owners to enter into loan restruc-
turing agreements with the Secretary to obtain 
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new types of financial assistance to rehabilitate 
and maintain the projects; and 
‘‘(B) by deregulating certain projects in a 
manner that still provides measurable perform-
ance standards and effective financing and re-
habilitation of multifamily housing. 
‘‘(b) REVITALIZATION.— 
‘‘(1) IN GENERAL.—The Secretary shall, sub-
ject to the availability of amounts appropriated, 
carry out a revitalization program in accordance 
with this subsection to provide financial incentives 
and other assistance to owners of eligible projects 
through voluntary long-term use agreements entered 
into between the project owners and the Secretary. 
‘‘(2) APPLICATIONS
TO
PARTICIPATE.—The 
Secretary may accept applications from owners of el-
igible projects to participate in the revitalization pro-
gram under this section. 
‘‘(3) LONG-TERM VIABILITY PLAN.— 
‘‘(A) REQUIREMENT.—The Secretary may 
prepare and approve a long-term viability plan 
under this paragraph with respect to each eligi-
ble project for which the owner requests to par-
ticipate. 
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