I 
114TH CONGRESS 
2D SESSION 
H. R. 4908 
To provide rental assistance to low-income tenants of certain multifamily 
rural housing projects, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 12, 2016 
Ms. KUSTER (for herself and Mr. NOLAN) introduced the following bill; which 
was referred to the Committee on Financial Services 
A BILL 
To provide rental assistance to low-income tenants of certain 
multifamily rural housing projects, and for other purposes. 
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 ‘‘Rural Housing Preser-
vation Act of 2016’’. 
VerDate Sep 11 2014 
03:39 Apr 14, 2016
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4908.IH
H4908
smartinez on DSK4TPTVN1PROD with BILLS
SEC. 2. AVAILABILITY OF RURAL HOUSING VOUCHERS FOR 
TENANTS IN PROJECTS WITH MATURING 
LOANS. 
(a) IN GENERAL.—Section 542 of the Housing Act 
of 1949 (42 U.S.C. 1490r) is amended by adding at the 
end the following new subsection: 
‘‘(c) RURAL VOUCHERS FOR TENANTS OF PROJECTS 
WITH PREPAID OR MATURING LOANS.— 
‘‘(1) AUTHORITY.—Subject to the availability of 
amounts provided in appropriation Acts and to para-
graph (3), the Secretary shall provide rural housing 
vouchers under this section, in the amount provided 
under this section, to any low-income household (in-
cluding those not receiving rental assistance) resid-
ing in a property financed with a loan made or in-
sured under section 515 (42 U.S.C. 1485) which has 
been prepaid, or which has matured, after Sep-
tember 30, 2005. 
‘‘(2) ADMINISTRATION
AND
SUBSIDIES.—The 
Secretary shall, to the maximum extent practicable, 
administer and operate such vouchers with current 
regulations and administrative guidance applicable 
to enhanced vouchers under section 8(t) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f(t)) and administered by the Secretary of 
Housing and Urban Development. The amount of 
VerDate Sep 11 2014 
03:39 Apr 14, 2016
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4908.IH
H4908
smartinez on DSK4TPTVN1PROD with BILLS
rental assistance provided on behalf of holders of 
such vouchers shall be the same as that provided on 
behalf of holders of enhanced vouchers under such 
section 8(t). 
‘‘(3) TERMINATION OF ASSISTANCE.—The Sec-
retary shall terminate the provision of voucher as-
sistance pursuant to this subsection, with respect to 
a property, if— 
‘‘(A) at any time, a new loan is made or 
insured under section 515 for the property; and 
‘‘(B) as a result of such loan, rental assist-
ance is provided on behalf of the voucher holder 
in an amount comparable to the rental assist-
ance provided on behalf of the voucher holder 
under the voucher program.’’. 
(b) REQUIREMENT FOR SECTION 515 PROJECTS TO 
ACCEPT VOUCHERS.—Section 515 of the Housing Act of 
1949 (42 U.S.C. 1485) is amended by adding at the end 
the following new subsection: 
‘‘(bb) REQUIREMENT TO ACCEPT RURAL HOUSING 
VOUCHERS.—No owner of a property financed with a loan 
made or insured under this section, whether such loan is 
outstanding or fully paid, may refuse to lease an available 
dwelling unit in the property to a household on behalf of 
whom voucher assistance is provided under section 542 
VerDate Sep 11 2014 
04:00 Apr 15, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4908.IH
H4908
smartinez on DSK4TPTVN1PROD with BILLS
(42 U.S.C. 1490r), and to enter into a voucher contract 
respecting such unit, a proximate cause of which is the 
status of such current or prospective tenant as a holder 
of such voucher.’’. 
SEC. 3. DECOUPLING RENTAL ASSISTANCE FROM MATUR-
ING RURAL HOUSING LOANS. 
Paragraph (2) of section 521(a) of the Housing Act 
of 1949 (42 U.S.C. 1490a(a)(2)) is amended by adding 
at the end the following new subparagraph: 
‘‘(F) RENTAL ASSISTANCE FOR PROJECTS 
WITH MATURED LOANS.— 
‘‘(i) AUTHORITY.—To continue to 
make decent, safe and sanitary housing 
available 
to 
low-income 
occupants 
of 
projects originally financed with a loan 
made or insured under section 515 that 
has matured on or after the date of the en-
actment of this subparagraph, and at rent-
al rates commensurate to income as speci-
fied in subparagraph (A) of this para-
graph, the Secretary may, subject to the 
availability of amounts provided in appro-
priation Acts, contract to make, make, and 
renew annual assistance payments pursu-
VerDate Sep 11 2014 
03:39 Apr 14, 2016
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4908.IH
H4908
smartinez on DSK4TPTVN1PROD with BILLS
ant to this subparagraph to the owners of 
such projects. 
‘‘(ii) OFFER.—The Secretary shall en-
sure that an offer to provide a contract for 
assistance payments pursuant to this sub-
paragraph shall be extended to all owners 
of projects described in clause (i) not later 
than 24 months before the maturation of 
the loan (except in the case of loans ma-
turing after the date that is 24 months be-
fore the date of the enactment of this sub-
paragraph). 
‘‘(iii) TERMS.—Each contract for as-
sistance payments pursuant to this sub-
paragraph shall— 
‘‘(I) have a term of 20 years and 
be subject to availability of amounts 
provided in annual appropriations 
Acts; 
‘‘(II) cover all new and existing 
households residing in the project, re-
gardless of whether or not they were 
previously assisted under the rental 
assistance program authorized under 
subparagraph (A); 
VerDate Sep 11 2014 
03:39 Apr 14, 2016
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4908.IH
H4908
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(III) be recorded at such local 
real property recording office as is 
prescribed by the State in which the 
project is located; 
‘‘(IV) bind the owner of the 
project and the owner’s successors to 
continue to operate the project in ac-
cordance with such agreements; 
‘‘(V) require the owner (and such 
successors) to agree to continue to op-
erate the projects as if it were subject 
to an existing loan under section 515; 
‘‘(VI) extend to residents of the 
project all the rights that at the time 
such contract is entered into are ex-
tended to residents of projects subject 
to an existing loan under section 515; 
and 
‘‘(VII) require the owner (and 
such successors) to maintain the as-
sisted housing as decent, safe, and 
sanitary housing. 
‘‘(iv) ACTUAL MARKET RENTALS.— 
‘‘(I) IN
GENERAL.—A contract 
for assistance provided pursuant to 
VerDate Sep 11 2014 
04:00 Apr 15, 2016
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4908.IH
H4908
smartinez on DSK4TPTVN1PROD with BILLS
this subparagraph for a project shall 
provide assistance to the owner based 
on an initial reasonable operating 
budget the rents for which do not ex-
ceed such actual market rental rates 
for the area in which the project is lo-
cated, as are established by the Sec-
retary. 
‘‘(II) ADJUSTMENT; RENEWAL.— 
The Secretary shall adjust the actual 
market rental rates used for purposes 
of this clause annually. 
‘‘(v) 
RENEWAL; 
ADJUSTMENT.—In 
providing assistance pursuant to this sub-
paragraph, the Secretary shall require the 
owner of the project to renew the assist-
ance provided to each household not less 
frequently than annually, in accordance 
with the provisions of subparagraph (A), 
and shall adjust the amount of assistance 
provided to a household at any other time 
upon a decrease in the household’s month-
ly income of $100 or more. 
‘‘(vi) ADMINISTRATION.—Rental as-
sistance contracts authorized by this sub-
VerDate Sep 11 2014 
03:39 Apr 14, 2016
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4908.IH
H4908
smartinez on DSK4TPTVN1PROD with BILLS
paragraph shall, except as otherwise pro-
vided in this subparagraph, be adminis-
tered by the Secretary in the same manner 
as rental assistance contracts for projects 
having existing loans made or insured 
under section 515 or existing loans and 
grants made under sections 514 and 
516.’’. 
SEC. 4. UNIFORM STANDARDS FOR TRANSFERS OF SEC-
TION 515 PROPERTIES USING LOW-INCOME 
TAX CREDITS. 
Section 515 of the Housing Act of 1949 (42 U.S.C. 
1485) is amended by adding at the end the following new 
subsection: 
‘‘(bb) REQUIREMENTS FOR TRANSFERS OF PROP-
ERTIES INVOLVING LOW-INCOME HOUSING TAX CRED-
ITS.—The Secretary shall establish, without exception, 
uniform requirements, terms, and conditions for any sale 
or transfer of a property financed with a loan under this 
section to any entity, including a nonprofit organization, 
that is seeking to acquire such property with amounts au-
thorized under this section and any low-income housing 
tax credit under section 42 of the Internal Revenue Code 
of 1986.’’. 
VerDate Sep 11 2014 
03:39 Apr 14, 2016
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4908.IH
H4908
smartinez on DSK4TPTVN1PROD with BILLS
SEC. 5. RURAL MULTIFAMILY HOUSING REVITALIZATION 
PROGRAM. 
Section 515 of the Housing Act of 1949 (42 U.S.C. 
1485) is amended by adding at the end the following new 
subsection: 
‘‘(bb) MULTIFAMILY
HOUSING
REVITALIZATION 
PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary may estab-
lish a Multifamily Housing Revitalization Program 
for the preservation and revitalization of multifamily 
housing projects funded with loans made available 
pursuant to this section and sections 514 and 516 
to ensure that such projects have sufficient resources 
to provide safe and affordable housing for low-in-
come residents and farm laborers. 
‘‘(2) OPTIONS.—In carrying out paragraph (1), 
the Secretary may— 
‘‘(A) with respect to such loans— 
‘‘(i) reduce or eliminate interest; 
‘‘(ii) defer loan payments; and 
‘‘(iii) subordinate, reduce, or reamor-
tize loan debt; and 
‘‘(B) provide other financial assistance, in-
cluding— 
‘‘(i) advances; and 
VerDate Sep 11 2014 
04:00 Apr 15, 2016
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4908.IH
H4908
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(ii) payments and incentives (includ-
ing the ability of owners to obtain reason-
able returns on investment). 
‘‘(3) REQUIREMENTS.—In exchange for assist-
ance provided pursuant to this subsection, the Sec-
retary shall enter into with the property owner a re-
strictive use agreement to ensure that the property 
remains subject to low-income use restrictions for an 
additional period of time consistent with the terms 
of the restructuring. 
‘‘(4) USE
OF
FUNDS
FOR
RURAL
HOUSING 
VOUCHERS.— 
‘‘(A) AUTHORITY.—If the Secretary deter-
mines that additional funds for vouchers under 
the rural housing voucher program under sec-
tion 542 (42 U.S.C. 1490r) are needed, funds 
for the revitalization program under this sub-
section may be used for such vouchers for any 
low-income household (including those not re-
ceiving rental assistance) residing in a property 
financed with a loan under this section that has 
been prepaid after September 30, 2005. 
‘‘(B) AMOUNT.—Notwithstanding section 
542, the amount of a voucher provided pursu-
ant to this paragraph shall be the difference be-
VerDate Sep 11 2014 
03:39 Apr 14, 2016
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H4908.IH
H4908
smartinez on DSK4TPTVN1PROD with BILLS
tween comparable market rent for the unit and 
the tenant-paid rent for such unit. 
‘‘(C) AVAILABILITY.—Funds made avail-
able for vouchers pursuant to this paragraph 
shall be subject to the availability of annual ap-
propriations. 
‘‘(D) ADMINISTRATION.—The Secretary 
shall, to the maximum extent practicable, ad-
minister vouchers provided pursuant to this 
paragraph with current regulations and admin-
istrative guidance applicable to housing vouch-
ers under section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f) adminis-
tered by the Secretary of Housing and Urban 
Development.’’. 
SEC. 6. REGULATIONS. 
The Secretary of Agriculture shall issue regulations 
necessary to carry out the amendments made by this Act 
not later than the expiration of the 120-day period begin-
ning on the date of the enactment of this Act. 
Æ 
VerDate Sep 11 2014 
03:39 Apr 14, 2016
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6301
E:\BILLS\H4908.IH
H4908
smartinez on DSK4TPTVN1PROD with BILLS