A bill to reauthorize the Multifamily Assisted Housing Reform and Affordability Act of 1997, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mark-to-Market Extension Act of 
2001''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to continue the progress of the Multifamily Assisted 
        Housing Reform and Affordability Act of 1997 (referred to in 
        this section as ``that Act'');
            (2) to ensure that properties that undergo mortgage 
        restructurings pursuant to that Act are rehabilitated to a 
        standard that allows the properties to meet their long-term 
        affordability requirements;
            (3) to ensure that, for properties that undergo mortgage 
        restructurings pursuant to that Act, reserves are set at 
        adequate levels to allow the properties to meet their long-term 
        affordability requirements;
            (4) to ensure that properties that undergo mortgage 
        restructurings pursuant to that Act are operated efficiently, 
        and that operating expenses are sufficient to ensure the long-
        term financial and physical integrity of the properties;
            (5) to ensure that properties that undergo rent 
        restructurings have adequate resources to maintain the 
        properties in good condition;
            (6) to ensure that the Office of Multifamily Housing 
        Assistance Restructuring continues to focus on the portfolio of 
        properties eligible for restructuring under that Act;
            (7) to ensure that the Department of Housing and Urban 
        Development carefully tracks the condition of those properties 
        on an ongoing basis;
            (8) to ensure that tenant groups, non-profit organizations, 
        and public entities continue to have the resources for building 
        the capacity of tenant organizations in furtherance of the 
        purposes of subtitle A of that Act; and
            (9) to encourage the Office of Multifamily Housing 
        Assistance Restructuring to continue to provide participating 
        administrative entities, including public participating 
        administrative entities, with the flexibility to respond to 
        specific problems that individual cases may present, while 
        ensuring consistent outcomes around the country.

SEC. 3. DEFINITIONS.

    Section 512 of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding 
at the end the following:
            ``(19) Department.--The term `Department' means the 
        Department of Housing and Urban Development.
            ``(20) Office.--The term `Office' means the Office of 
        Multifamily Housing Assistance Restructuring established under 
        section 571.''.

SEC. 4. FHA-INSURED MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE 
              RESTRUCTURING.

    The Multifamily Assisted Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note) is amended--
            (1) in section 514(f)(3)(A)--
                    (A) by striking ``Secretary may provide'' and 
                inserting ``Secretary shall provide''; and
                    (B) by striking ``entities) and for tenant 
                services,'' and inserting ``entities), for tenant 
                services, and for tenant groups, nonprofit 
                organizations, and public entities described in section 
                517(a)(5),'';
            (2) in section 514(g)(2)(A), by striking ``mortgages in any 
        fiscal year'' and inserting ``rents and mortgages under this 
        subtitle'';
            (3) in section 515(c)(4), by inserting before the period 
        the following: ``, which assistance shall be accepted by the 
        owner of that project as payment for rent if the property use 
        continues as rental housing'';
            (4) in section 516(d), by striking ``Subject to'' and 
        inserting the following:
            ``(1) Notice to certain residents.--The Office shall notify 
        any tenant that is residing in a project or receiving 
        assistance under section 8 of the United States Housing Act of 
        1937 (42 U.S.C. 1437f) at the time of rejection under this 
        section, of that rejection.
            ``(2) Assistance and moving expenses.--Subject to'';
            (5) in section 524(e), by adding at the end the following:
            ``(3) Mortgage restructuring and rental assistance 
        sufficiency plans.--Notwithstanding paragraph (1), the owner of 
        the project may request, and the Secretary may consider, 
        mortgage restructuring and rental assistance sufficiency plans 
        to facilitate sales or transfers of properties under this 
        subtitle, subject to an approved plan of action under the 
        Emergency Low Income Housing Preservation Act of 1987 (12 
        U.S.C. 1715l note) or the Low-Income Housing Preservation and 
        Resident Homeownership Act of 1990 (12 U.S.C. 4101 et seq.), 
        which plans shall result in a sale or transfer of those 
        properties.'';
            (6) in section 512(2), in the second sentence, by inserting 
        ``, but does include a project described in section 524(e)(3)'' 
        after ``section 524(e)'';
            (7) in section 517(b), by adding at the end the following:
            ``(8) Addition of significant features.--
                    ``(A) In general.--If the participating 
                administrative entity requires the addition of 
                significant features, such as air conditioning, an 
                elevator, or additional community space, in accordance 
                with guidelines established by the Secretary, the 
                required owner contribution shall not exceed 25 percent 
                of the amount of rehabilitation assistance received, as 
                determined by the Secretary.
                    ``(B) Applicability.--Subparagraph (A) shall apply 
                to all eligible multifamily housing projects, except 
                those for which both the Secretary and the project 
                owner executed a mortgage restructuring and rental 
                assistance sufficiency plan on or before the date of 
                enactment of the Mark-to-Market Extension Act of 2001.
                    ``(C) Additional cost.--Nothing in this paragraph 
                shall be construed to relieve an owner or purchaser 
                from contributing to rehabilitation assistance, as 
                required under paragraph (7)(B).'';
            (8) in section 512(2), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) with rents that, on an average per unit or 
                per room basis--
                            ``(i) exceed the rent of comparable 
                        properties in the same market area, as 
                        determined by the Secretary or a participating 
                        administrative entity or any other independent 
                        entity acting on behalf of the Secretary and in 
                        accordance with guidelines established by the 
                        Secretary; or
                            ``(ii) exceeded the rent of comparable 
                        properties in the same market area, as 
                        determined by the Secretary, prior to, and 
                        notwithstanding, any renewal of project-based 
                        assistance under this subtitle;'';
            (9) in section 520(b)--
                    (A) by striking ``Banking and'';
                    (B) by striking ``periods, the'' and inserting the 
                following: ``periods--
            ``(1) the'';
                    (C) by striking the period at the end and inserting 
                a semicolon; and
                    (D) by adding at the end the following:
            ``(2) the physical and financial condition of properties 
        that are the subject of rent and mortgage restructurings under 
        this subtitle, with special emphasis on properties that have 
        undergone rent restructurings after the Office determined that 
        mortgage restructurings were necessary; and
            ``(3) the status of oversight by the Department, of the 
        financial and physical condition of properties referred to in 
        paragraph (2).''; and
            (10) in section 517(a)(1)(B), by striking ``no more than 
        the'' and inserting the following: ``not more than the greater 
        of--
                            ``(i) the full or partial payment of claim 
                        made under this subtitle; or
                            ``(ii) the''.

SEC. 5. ENHANCED VOUCHERS.

    Section 8(t)(1)(B) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(t)(1)(B)) is amended by inserting after ``paragraph 
(10)(A) of subsection (o)'' the following: ``, and subject to the 
comparable rent limitations provided in subparagraphs (A) and (B) of 
section 514(g)(1) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note)''.

SEC. 6. MISCELLANEOUS HOUSING INSURANCE.

    Section 223(a)(7) of the National Housing Act (12 U.S.C. 
1715n(a)(7)) is amended--
            (1) by striking ``under this Act: Provided, That the 
        principal'' and inserting the following: ``under this Act, or 
        an existing mortgage held by the Secretary that is subject to a 
        mortgage restructuring and rental assistance sufficiency plan 
        pursuant to the Multifamily Assisted Housing Reform and 
        Affordability Act of 1997 (42 U.S.C. 1437f note), provided 
        that--
                    ``(A) the principal'';
            (2) by striking ``: Provided further, That a mortgage'' and 
        inserting the following ``; and
                    ``(B) a mortgage''; and
            (3) by striking ``or'' at the end and inserting the 
        following:
                    ``(C) a mortgage that is subject to a mortgage 
                restructuring and rental assistance sufficiency plan 
                pursuant to the Multifamily Assisted Housing Reform and 
                Affordability Act of 1997 (42 U.S.C. 1437f note) and is 
                refinanced under this paragraph may have a term of not 
                more than 30 years; or''.

SEC. 7. TECHNICAL CORRECTION.

    (a) In General.--Section 531(c) of Public Law 106-74 (113 Stat. 
1116) is amended by striking ``514(h)'' and inserting ``514(h)(1)''.
    (b) Retroactive Effect.--The amendment made by subsection (a) shall 
be deemed to have the same effective date as section 531 of Public Law 
106-74 (113 Stat. 1109).

SEC. 8. OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING.

    (a) In General.--The Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended--
            (1) in section 571--
                    (A) by inserting ``Federal Housing Administration 
                of the'' after ``within the''; and
                    (B) by inserting before the period at the end the 
                following: ``(in this subtitle, referred to as the 
                `Office')'';
            (2) in section 572(a)--
                    (A) by striking ``by and with the advice and 
                consent of the Senate''; and
                    (B) by striking the second sentence;
            (3) in section 573(b), in the first sentence, by inserting 
        ``the Federal Housing Commissioner and'' before ``the 
        Secretary''; and
            (4) in section 579--
                    (A) by striking subsection (a) and inserting the 
                following:
    ``(a) Repeal.--Subtitle A (except for section 524) and subtitle D 
(except for section 576 and this section) are repealed effective 
October 1, 2006, and section 576 is repealed effective October 1, 
2007.'';
                    (B) in subsection (b), by striking ``2001'' and 
                inserting ``2006''; and
                    (C) in subsection (c), by striking ``2001'' and 
                inserting ``2006''.
    (b) Limitation on Subsequent Employment.--Section 576 of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note) is amended by striking ``2-year period'' and 
inserting ``1-year period''.
    (c) Repeal.--Section 578 of the Multifamily Assisted Housing Reform 
and Affordability Act of 1997 (42 U.S.C. 1437f note) is repealed.

SEC. 9. GAO REPORTS.

    (a) Initial Report.--
            (1) In general.--Not later than October 1, 2002, and 
        annually thereafter through 2005, the Comptroller General of 
        the United States shall submit to the Congress a report on the 
        activities carried out under the Multifamily Assisted Housing 
        Reform and Affordability Act of 1997 (42 U.S.C. 1437f note).
            (2) Contents.--The report required under paragraph (1) 
        shall describe--
                    (A) progress in completing restructurings under 
                subtitle A of the Multifamily Assisted Housing Reform 
                and Affordability Act of 1997 (42 U.S.C. 1437f note) in 
                a timely manner, while ensuring the physical, 
                financial, and managerial soundness of the multifamily 
                housing stock; and
                    (B) the status of shortcomings or concerns of the 
                eligible multifamily housing projects reviewed in the 
                2001 report submitted by the Comptroller General in 
                accordance with section 521 of that Act.
    (b) Final Report.--
            (1) In general.--Not less than 4 months prior to the date 
        of termination of the restructuring program established under 
        subtitle A of the Multifamily Assisted Housing Reform and 
        Affordability Act of 1997 (42 U.S.C. 1437f note), the 
        Comptroller General of the United States shall submit to the 
        Congress a final report on the activities carried out under 
        that Act.
            (2) Contents.--The report required under paragraph (1) 
        shall describe--
                    (A) matters pertaining to the termination of the 
                Office of Multifamily Housing Assistance Restructuring, 
                established under section 571 of the Multifamily 
                Assisted Housing Reform and Affordability Act of 1997 
                (42 U.S.C. 1437f note), and the restructuring program; 
                and
                    (B) the transition of any remaining 
                responsibilities under that Act after the date of 
                termination to the Office of Housing within the 
                Department of Housing and Urban Development.

Summary: Mark-to-Market Extension Act of 2001 - Amends the Multifamily Assisted Housing Reform and Affordability Act of 1997 (Act) to require (currently, authorizes) the Secretary of Housing and Urban Development to make specified funds available to tenant, nonprofit, and other organizations for activities under such Act.Requires the Office of Multifamily Housing Assistance Restructuring (Office) to provide section 8 residents with notice of a restructuring plan's rejection.Authorizes the Secretary to consider mortgage restructuring and rental sufficiency plans to facilitate property transfers.Limits owner contribution to 25 percent of rehabilitation costs in the case of certain required additional features such as elevators, air conditioning, or community space.Amends the United States Housing Act of 1937 to provide for consistent rent standards for projects undergoing restructuring, and for tenant-based vouchers.Amends the National Housing Act to limit a refinanced mortgage subject to a mortgage restructuring and rental sufficiency plan to not more than a 30-year term. Extends the Office and mortgage and rehabilitation programs under the Act.Reduces from two years to one year the limitation on subsequent employment by the Director of the Office or certain other employees with a non-Federal employer having any financial interest in any mortgage restructuring or rental sufficiency plan.Directs the Comptroller General to: (1) report annually through 2005 to Congress respecting the activities carried out under the Act; and (2) submit a final report to Congress.