SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—The Congress finds that— 
(1) there exists throughout the United States a 
need for decent, safe, and affordable housing; 
(2) the General Accounting Office (GAO) esti-
mates that— 
(A) there are 11,267 multifamily prop-
erties, serving approximately 914,441 house-
holds nationwide, that are financed with mort-
gages subsidized by the Department of Housing 
and Urban Development; 
(B) 1,835 of these properties, which con-
tain over 193,000 subsidized units, are financed 
with mortgages insured under the below-market 
interest rate program under section 221(d)(3) 
of the National Housing Act or the interest re-
duction payments program under section 236 of 
such Act, and these properties will be lost by 
2013 when the mortgages mature and the mort-
gage subsidies and low-income affordability re-
strictions related to those subsidies terminate; 
and 
(C) as a result, owners of properties with-
out rental assistance will be permitted to raise 
the rents in such properties to market levels, 
putting at risk approximately 200,000 individ-
uals in over 101,000 units in properties having 
no other subsidy attached; 
(3) the GAO concludes that neither the Depart-
ment of Housing and Urban Development nor State 
or local agencies offer incentives to owners to keep 
properties affordable upon mortgage maturity; 
(4) the GAO also concludes that no incentives 
exist, such as enhanced vouchers, to protect tenants 
in units without rental assistance when HUD-sub-
sidized mortgages mature; 
(5) the GAO further concludes that the Depart-
ment of Housing and Urban Development does not 
require owners to provide written notice to tenants 
that the low-income affordability restrictions will ter-
minate when the HUD-subsidized mortgages ma-
ture; 
(6) when faced with similar crises in the past, 
the Congress acted to provide incentives for owners 
to continue the low-income affordability restrictions, 
thus ensuring that these properties remain afford-
able to low- and moderate-income households; 
(7) the Congress also acted to provide enhanced 
vouchers to tenants living in multifamily units re-
ceiving assistance under Federal low-income housing 
programs in cases in which the owner prepaid the
HUD-subsidized mortgage or opted out of the rental 
assistance contract; and 
(8) the Congress also required owners to pro-
vide tenants with written notice of their intent to 
prepay their HUD-subsidized mortgage or to opt-out 
of their section 8 rental assistance contract. 
(b) PURPOSE.—It is the purpose of this Act— 
(1) to promote the preservation of affordable 
housing units by providing assistance to owners to 
ensure that these dwelling units remain affordable to 
low- and moderate-income households; and 
(2) to minimize the involuntary displacement of 
low- and moderate-income tenants who are currently 
residing in multifamily properties that are currently 
receiving subsidies under Federal low-income hous-
ing programs, many of whom are elderly or disabled 
persons. 
SEC. 3. FEDERAL ASSISTANCE AND EXTENSION OF AF-
FORDABILITY REQUIREMENTS. 
(a) PROVISION OF ASSISTANCE.— 
(1) AUTHORITY.—The Secretary may use 
amounts made available under subsection (e) to pro-
vide assistance under subsections (b), (c), and (d) 
with respect to covered multifamily housing prop-
erties.
(2) APPLICATIONS AND SELECTION CRITERIA.— 
The Secretary shall provide for owners of covered 
multifamily housing properties to submit applica-
tions for assistance under subsections (b), (c), and 
(d) for covered multifamily housing properties. Sub-
ject to paragraph (3), the Secretary shall establish 
criteria for selection of properties to receive assist-
ance under each of subsections (b), (c), and (d), 
which shall take into consideration the need of a 
property for assistance for the purpose under this 
Act for which the assistance is made available. 
(3) PRIORITY.—The criteria established pursu-
ant to paragraph (2) for selection of properties to 
receive assistance under each of subsections (b), (c), 
and (d) shall provide priority for selection of prop-
erties based on the following factors: 
(A) The proximity in time of the termi-
nation date for the property. 
(B) The extent to which the dwelling units 
in the property are occupied by low-income fam-
ilies. 
(C) The extent to which assurances by the 
owner of the property provide that the afford-
ability restrictions for the property will be ex-
tended beyond the period required under sub-
section (b)(4), (c)(5), or (d)(6), as applicable. 
(D) Such other factors as the Secretary 
may provide. 
(b) REHABILITATION ASSISTANCE.—The Secretary 
may provide a grant under this subsection to the owner 
of the property, subject to the following requirements: 
(1) PURPOSE.—The assistance shall be pro-
vided for the purpose of rehabilitating the property 
for continued use as housing affordable to low- and 
moderate-income families. 
(2) ELIGIBLE USE.—Amounts from the grant 
may be used only for payment of nonrecurring main-
tenance and capital improvements for the property, 
under such terms and conditions as are determined 
by the Secretary. 
(3) PER
UNIT
AMOUNT
LIMITATIONS.—The 
amount from a grant used with respect to a dwelling 
unit in the property may not exceed the per unit dol-
lar amount limitation as the Secretary shall establish 
for purposes of this subsection for dwelling units of 
the applicable size. 
(4) REQUIRED EXTENSION OF AFFORDABILITY 
RESTRICTIONS.—The Secretary may provide assist-
ance under this subsection for a property only if the
owner of the property enters into such binding com-
mitments as the Secretary may require, which shall 
be applicable to any subsequent owner, to ensure 
that the property will be operated, for a period of 
not less than 20 years that begins on the termi-
nation date for the property, in accordance with all 
affordability restrictions that are applicable to the 
property under the multifamily housing subsidy pro-
gram under which the property is assisted before the 
termination date. 
(c) ASSISTANCE FOR PURCHASE BY NONPROFIT EN-
TITIES.—The Secretary may provide a grant under this 
subsection to a nonprofit organization for acquisition of 
a covered multifamily housing property, subject to the fol-
lowing requirements: 
(1) PURPOSE.—The assistance shall be pro-
vided for the purpose of facilitating acquisition of 
properties by nonprofit organizations whose missions 
are to provide affordable housing to low- and mod-
erate-income families. 
(2) ELIGIBLE NONPROFIT ORGANIZATIONS.—A 
grant under this section may be made only to a non-
profit organization that provides such assurances as 
the Secretary may require that the organization— 
(A) will acquire the property; and
(B) is capable of managing the property 
and related facilities (either directly or through 
a contract) for the remaining useful life of the 
property and related facilities. 
(3) ELIGIBLE USE.—Amounts from the grant 
may be used only to cover any direct costs (other 
than the purchase price) incurred by the nonprofit 
organization in purchasing and assuming responsi-
bility for the property and related facilities involved. 
(4) PER
UNIT
AMOUNT
LIMITATIONS.—The 
amount from a grant used with respect to a dwelling 
unit in the property may not exceed the per unit dol-
lar amount limitation as the Secretary shall establish 
for purposes of this subsection for dwelling units of 
the applicable size. 
(5) REQUIRED EXTENSION OF AFFORDABILITY 
RESTRICTIONS.—The Secretary may provide assist-
ance under this subsection for a property only if the 
owner of the property enters into such binding com-
mitments as the Secretary may require, which shall 
be applicable to any subsequent owner, to ensure 
that the property will be operated, for the remaining 
useful life of the property, in accordance with all af-
fordability restrictions that are applicable to the 
property under the multifamily housing subsidy pro-
gram under which the property is assisted before the 
termination date. 
(d) LOW- AND MODERATE-INCOME AFFORDABILITY 
ASSISTANCE.—The Secretary may make assistance avail-
able under this subsection to the owner of a covered multi-
family housing property, subject to the following require-
ments: 
(1) PURPOSE.—The assistance shall be pro-
vided for the purpose of maintaining the afford-
ability of dwelling units, in properties located in 
strong rental markets, for low- and moderate-income 
families residing in the property. 
(2) ELIGIBILITY.—Assistance may be made 
available for a property only if— 
(A) the property is located in an area in 
which the Secretary determines, based on hous-
ing market indicators, such as low vacancy 
rates or high absorption rates, that there is not 
adequate available and affordable housing; and 
(B) the property is not owned by a non-
profit organization whose purpose in owning the 
housing is to provide affordable housing to low- 
or moderate-income families. 
(3) FORM AND TERM.—The assistance shall be 
in the form of an annual payment and shall be pro-
vided for such term as may be agreed to by the Sec-
retary and the owner of the property. 
(4) 
PREVENTION
OF
DUPLICATIVE
SUB-
SIDIES.—Assistance may not be provided for any 
dwelling unit in a property during any period during 
which such unit is provided project-based or tenant- 
based rental assistance of any kind from any source. 
(5) AMOUNT
AND
RENT
LEVELS.—The Sec-
retary shall determine the amount of annual assist-
ance provided for a property based on rent levels, for 
the dwelling units in the property that are subject 
to affordability restrictions pursuant to paragraph 
(6), that are equal to the lesser of— 
(A) comparable market rents for the mar-
ket area in which the property is located for 
dwelling units of the applicable size; and 
(B) 150 percent of the fair market rentals 
established under section 8(c) of the United 
States Housing Act of 1937 for the market 
area in which the property is located for dwell-
ing units of the applicable size. 
(6) REQUIRED EXTENSION OF AFFORDABILITY 
RESTRICTIONS.—The Secretary may provide assist-
ance under this subsection for a property only if the 
owner of the property enters into such binding com-
mitments as the Secretary may require, which shall 
be applicable to any subsequent owner, to ensure 
that the property will be operated, for a period not 
shorter than the term of the assistance agreed to 
pursuant to paragraph (3) or 10 years, whichever is 
longer, that begins on the termination date for the 
property, in accordance with all affordability restric-
tions that are applicable to the property under the 
multifamily housing subsidy program under which 
the property is assisted before the termination date. 
(e) FUNDING.—For purposes of providing assistance 
under this section, the Secretary may make available— 
(1) $675,000,000 from the amounts made 
available under the heading ‘‘Rent Supplement’’ in 
chapter VI of title I of the Supplemental Appropria-
tions Act, 1983 (Public Law 98–63; 97 Stat 320) 
for amendments to contracts under section 101 of 
the Housing and Urban Development Act of 1965 
(12 U.S.C. 1701s) and section 236(f)(2) of the Na-
tional Housing Act (12 U.S.C. 1715z–1(f)(2) in 
State-aided, noninsured rental housing projects, that 
remain unobligated; and 
(2) such other sums from the amounts made 
available in any fiscal year under the heading re-
ferred to in paragraph (1) that remain or may be-
come unobligated. 
SEC. 4. ENHANCED VOUCHERS. 
(a) REQUIREMENT.—Upon the termination date for 
each assisted multifamily housing project, to the extent 
that amounts for assistance under this subsection are pro-
vided in advance in appropriation Acts, the Secretary shall 
make enhanced voucher assistance under section 8(t) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437f(t)) available on behalf of each family described in 
subsection (b). 
(b) ELIGIBILITY.—A family described in this sub-
section is a family who— 
(1)(A) is a low-income family; or 
(B) is a moderate-income family that is— 
(i) an elderly family (as such term is used 
in section 3(b) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(b)); 
(ii) a disabled family (as such term is used 
in section 3(b) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(b)); or 
(iii) residing in a low-vacancy area (as de-
termined by the Secretary); and 
(2) on such termination date, is residing in a 
dwelling unit of the project that—
(A) immediately before such termination 
date was assisted under the multifamily housing 
subsidy program for the project; and 
(B) is not assisted after such termination 
date under section 8 of such Act or pursuant to 
assistance under section 3 of this Act. 
(c) ELIGIBILITY EVENT.—Section 8(t)(2) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f(t)(2)) is amended by adding after the period at the 
end the following new sentence: ‘‘Such term includes, with 
respect to an assisted multifamily housing project (as such 
term is defined in section 7 of the Displacement Preven-
tion Act of 2004), the occurrence of the termination date 
for the project.’’. 
SEC. 5. NOTIFICATION REQUIREMENT. 
(a) TIMING.—An owner of an assisted multifamily 
housing property who intends to terminate or alter the af-
fordability restrictions for the property on or after the ter-
mination date for the property shall, not less than nine 
months before such termination date, provide written no-
tice of such termination date to the Secretary of Housing 
and Urban Development, the chief executive officer of the 
State and the unit of general local government (as such 
term is defined in section 104 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12704) in
which the property is located, and each tenant of the 
project. 
(b) CONTENTS.—The notice shall include— 
(1) a statement specifying any changes in the 
terms or applicability of the affordability restrictions 
for the property that the owner intends to make on 
or after the termination date for the property; 
(2) a statement that, if the owner proceeds with 
such intended changes and the Congress makes 
funds available, the Department of Housing and 
Urban Development will provide tenant-based rental 
assistance to all eligible residents, enabling them to 
choose the place they wish to rent, which may in-
clude the dwelling unit in which they currently re-
side; and 
(3) a statement that, if the Congress makes 
funds available, the owner and the Secretary may 
yet agree to renewal of assistance and affordability 
restrictions for the project, thereby obviating the 
need for such tenant-based rental assistance. 
(c) FAILURE TO PROVIDE NOTICE.—If the owner 
does not provide the notice required under this section, 
notwithstanding any inapplicability of the affordability re-
strictions for the project, the owner may not evict the ten-
ants or increase the tenants’ rent payments until such
time as the owner has provided the notice and one year 
has elapsed. 
(d) OTHER TERMS.—Any notice under this section 
shall comply with any additional requirements as the Sec-
retary may establish. 
(e) SAVINGS PROVISION.—This section may not be 
construed to annul, alter, affect, or preempt any provision 
of the law of a State or political subdivision thereof requir-
ing notice regarding termination of assistance or afford-
ability restrictions with respect to a multifamily housing 
project or to exempt any person from complying with such 
a law. 
SEC. 6. ANNUAL AND SEMIANNUAL REVIEWS. 
(a) ANNUAL REVIEW.—To ensure compliance with 
this Act, the Secretary shall conduct an annual review on 
actions taken under this Act and the status of covered 
multifamily housing properties and submit a report to the 
Congress regarding each such annual review. 
(b) SEMIANNUAL REVIEW.—Not less than semiannu-
ally during the 2-year period beginning on the date of the 
enactment of this Act and not less than annually there-
after, the Secretary shall submit reports to the Committee 
on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate stating, for such periods, the total number
appeal, age, property size, apartment mix, phys-
ical configuration, property and unit amenities, 
utilities, and other relevant characteristics; and 
(B) are not receiving project-based rental 
assistance of any kind from any source. 
(4) COVERED
MULTIFAMILY
HOUSING
PROP-
ERTY.—The term ‘‘covered multifamily housing 
property’’ means an assisted multifamily housing 
project for which the termination date will occur 
within the 10-year period beginning on the date of 
the enactment of this Act. 
(5) LOW-INCOME FAMILY.—The term ‘‘low-in-
come family’’ has the meaning given such term in 
section 3(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(b)). 
(6) MODERATE-INCOME
FAMILY.—The term 
‘‘moderate-income family’’ has the meaning given 
such term in section 229 of the Low-Income Hous-
ing Preservation and Resident Homeownership Act 
of 1992 (12 U.S.C. 4119). 
(7) MULTIFAMILY
HOUSING
SUBSIDY
PRO-
GRAM.—The term ‘‘multifamily housing subsidy pro-
gram’’ means— 
(A) the below-market interest rate mort-
gage 
insurance 
program 
under 
section
221(d)(3) of the National Housing Act (12 
U.S.C. 1715l(d)(3)); and 
(B) the program for interest reduction 
payments under section 236 of the National 
Housing Act (12 U.S.C. 1715z–1). 
(8) NONPROFIT
ORGANIZATION.—The term 
‘‘nonprofit organization’’ means any private organi-
zation that has no part of its net earning inuring to 
the benefit of any member, founder, contributor, or 
individual. 
(9) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(10) TERMINATION DATE.—The term ‘‘termi-
nation date’’ means, with respect to an assisted or 
a covered multifamily housing property, the date 
that— 
(A) the mortgage for the property that is 
insured under the below-market interest rate 
program under section 221(d)(3) of the Na-
tional Housing Act, or for which interest reduc-
tion payments are made under section 236 of 
such Act, matures; and 
(B) the affordability restrictions applicable 
to the property because of assistance for the 
property pursuant to a multifamily housing
subsidy program terminate with respect to the 
property. 
SEC. 8. REGULATIONS. 
The Secretary may issue any regulations necessary 
to carry out this Act. 
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