Strategy and Investment in Rural Housing Preservation Act of 2021
Bill: H.R.1728 | Sponsor: Rep. Axne, Cynthia (D-IA)
Policy area: Housing and Community Development

Summary:
Strategy and Investment in Rural Housing Preservation Act of 2021
This bill provides assistance to rural, multifamily rental-housing projects and tenants.
Specifically, the Department of Agriculture (USDA) must implement a program for the preservation and revitalization of such housing projects that are financed with USDA loans. As part of this program, USDA may restructure existing housing loans by reducing or eliminating interest and deferring loan payments.
When offering to restructure such a loan, USDA must also offer to renew a property owner's contract for rental assistance payments for a term of 20 years, provided that the property owner agrees to maintain the property as decent, safe, and sanitary housing for the full term of the contract.
USDA must annually provide written notice explaining the options to restructure such loans to certain property owners.
Additionally, USDA may provide technical assistance grants to qualified nonprofit organizations and public housing agencies to help borrowers acquire multifamily rental-housing properties in areas where there is a risk of loss of affordable housing.
Further, USDA may provide rural housing vouchers for low-income households (including those not receiving rental assistance) residing in certain properties financed with or insured by USDA loans.
The bill also extends existing housing protections for victims of domestic violence, dating violence, sexual assault, and stalking to victims who receive rural housing voucher assistance. These protections include protections against denial or termination of assistance or eviction.

To provide rental assistance to low-income tenants in certain 
   multifamily rural housing projects financed by the Rural Housing 
Service of the Department of Agriculture, and to develop and implement 
 a plan for preserving the affordability of rural rental housing, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strategy and Investment in Rural 
Housing Preservation Act of 2021''.

SEC. 2. PERMANENT ESTABLISHMENT OF HOUSING PRESERVATION AND 
              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. 545. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.

    ``(a) Establishment.--The Secretary shall carry out a program under 
this section for the preservation and revitalization of multifamily 
rental housing projects financed under section 515 or both sections 514 
and 516.
    ``(b) Notice of Maturing Loans.--
            ``(1) To owners.--On an annual basis, the Secretary shall 
        provide written notice to each owner of a property financed 
        under section 515 or both sections 514 and 516 that will mature 
        within the 4-year period beginning upon the provision of such 
        notice, setting forth the options and financial incentives that 
        are available to facilitate the extension of the loan term or 
        the option to decouple a rental assistance contract pursuant to 
        subsection (f).
            ``(2) To tenants.--
                    ``(A) In general.--For each property financed under 
                section 515 or both sections 514 and 516, not later 
                than the date that is 2 years before the date that such 
                loan will mature, the Secretary shall provide written 
                notice to each household residing in such property that 
                informs them of the date of the loan maturity, the 
                possible actions that may happen with respect to the 
                property upon such maturity, and how to protect their 
                right to reside in federally assisted housing after 
                such maturity.
                    ``(B) Language.--Notice under this paragraph shall 
                be provided in plain English and shall be translated to 
                other languages in the case of any property located in 
                an area in which a significant number of residents 
                speak such other languages.
    ``(c) Loan Restructuring.--Under the program under this section, 
the Secretary may restructure such existing housing loans, as the 
Secretary considers appropriate, for the purpose of ensuring that such 
projects have sufficient resources to preserve the projects to provide 
safe and affordable housing for low-income residents and farm laborers, 
by--
            ``(1) reducing or eliminating interest;
            ``(2) deferring loan payments;
            ``(3) subordinating, reducing, or reamortizing loan debt; 
        and
            ``(4) providing other financial assistance, including 
        advances, payments, and incentives (including the ability of 
        owners to obtain reasonable returns on investment) required by 
        the Secretary.
    ``(d) Renewal of Rental Assistance.--When the Secretary offers to 
restructure a loan pursuant to subsection (c), the Secretary shall 
offer to renew the rental assistance contract under section 521(a)(2) 
for a 20-year term that is subject to annual appropriations, provided 
that the owner agrees to bring the property up to such standards that 
will ensure its maintenance as decent, safe, and sanitary housing for 
the full term of the rental assistance contract.
    ``(e) Restrictive Use Agreements.--
            ``(1) Requirement.--As part of the preservation and 
        revitalization agreement for a project, the Secretary shall 
        obtain a restrictive use agreement that obligates the owner to 
        operate the project in accordance with this title.
            ``(2) Term.--
                    ``(A) No extension of rental assistance contract.--
                Except when the Secretary enters into a 20-year 
                extension of the rental assistance contract for the 
                project, the term of the restrictive use agreement for 
                the project shall be consistent with the term of the 
                restructured loan for the project.
                    ``(B) Extension of rental assistance contract.--If 
                the Secretary enters into a 20-year extension of the 
                rental assistance contract for a project, the term of 
                the restrictive use agreement for the project shall be 
                for 20 years.
                    ``(C) Termination.--The Secretary may terminate the 
                20-year use restrictive use agreement for a project 
                prior to the end of its term if the 20-year rental 
                assistance contract for the project with the owner is 
                terminated at any time for reasons outside the owner's 
                control.
    ``(f) Decoupling of Rental Assistance.--
            ``(1) Renewal of rental assistance contract.--If the 
        Secretary determines that a maturing loan for a project cannot 
        reasonably be restructured in accordance with subsection (c) 
        and the project was operating with rental assistance under 
        section 521, the Secretary may renew the rental assistance 
        contract, notwithstanding any provision of section 521, for a 
        term, subject to annual appropriations, of at least 10 years 
        but not more than 20 years.
            ``(2) Rents.--Any agreement to extend the term of the 
        rental assistance contract under section 521 for a project 
        shall obligate the owner to continue to maintain the project as 
        decent, safe and sanitary housing and to operate the 
        development in accordance with this title, except that rents 
        shall be based on the lesser of--
                    ``(A) the budget-based needs of the project; or
                    ``(B) (ii) the operating cost adjustment factor as 
                a payment standard as provided under section 524 of the 
                Multifamily Assisted Housing Reform and Affordability 
                Act of 1997 (42 U.S.C. 1437 note).
    ``(g) Multifamily Housing Transfer Technical Assistance.--Under the 
program under this section, the Secretary may provide grants to 
qualified non-profit organizations and public housing agencies to 
provide technical assistance, including financial and legal services, 
to borrowers under loans under this title for multifamily housing to 
facilitate the acquisition of such multifamily housing properties in 
areas where the Secretary determines there is a risk of loss of 
affordable housing.
    ``(h) Transfer of Rental Assistance.--After the loan or loans for a 
rental project originally financed under section 515 or both sections 
514 and 516 have matured or have been prepaid and the owner has chosen 
not to restructure the loan pursuant to subsection (c), a tenant 
residing in such project shall have 18 months prior to loan maturation 
or prepayment to transfer the rental assistance assigned to the 
tenant's unit to another rental project originally financed under 
section 515 or both sections 514 and 516, and the owner of the initial 
project may rent the tenant's previous unit to a new tenant without 
income restrictions.
    ``(i) Administrative Expenses.--Of any amounts made available for 
the program under this section for any fiscal year, the Secretary may 
use not more than $1,000,000 for administrative expenses for carrying 
out such program.
    ``(j) Authorization of Appropriations.--There is authorized to be 
appropriated for the program under this section $200,000,000 for each 
of fiscal years 2022 through 2026.''.

SEC. 3. ELIGIBILITY FOR RURAL HOUSING VOUCHERS.

    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) Eligibility of Households in Section 514, 515, and 516 
Projects.--The Secretary may provide rural housing vouchers under this 
section for any low-income household (including those not receiving 
rental assistance) residing in a property financed with a loan made or 
insured under section 514 or 515 (42 U.S.C. 1484, 1485) which has been 
prepaid, has been foreclosed, or has matured after September 30, 2005, 
or residing in a property assisted under section 514 or 516 that is 
owned by a nonprofit organization or public agency.''.

SEC. 4. AMOUNT OF VOUCHER ASSISTANCE.

    Notwithstanding any other provision of law, in the case of any 
rural housing voucher provided pursuant to section 542 of the Housing 
Act of 1949 (42 U.S.C. 1490r), the amount of the monthly assistance 
payment for the household on whose behalf such assistance is provided 
shall be determined as provided in subsection (a) of such section 542.

SEC. 5. USE OF AVAILABLE RENTAL ASSISTANCE.

    Subsection (d) of section 521 of the Housing Act of 1949 (42 U.S.C. 
1490a(d)) is amended by adding at the end the following new paragraph:
    ``(3) In the case of any rental assistance contract authority that 
becomes available because of the termination of assistance on behalf of 
an assisted family--
            ``(A) at the option of the owner of the rental project, the 
        Secretary shall provide the owner a period of 6 months before 
        such assistance is made available pursuant to subparagraph (B) 
        during which the owner may use such assistance authority to 
        provide assistance of behalf of an eligible unassisted family 
        that--
                    ``(i) is residing in the same rental project that 
                the assisted family resided in prior to such 
                termination; or
                    ``(ii) newly occupies a dwelling unit in such 
                rental project during such period; and
            ``(B) except for assistance used as provided in 
        subparagraph (A), the Secretary shall use such remaining 
        authority to provide such assistance on behalf of eligible 
        families residing in other rental projects originally financed 
        under section 515 or both sections 514 and 516 of this Act.''.

SEC. 6. FUNDING FOR MULTIFAMILY TECHNICAL IMPROVEMENTS.

    There is authorized to be appropriated to the Secretary of 
Agriculture $50,000,000 for fiscal year 2022 for improving the 
technology of the Department of Agriculture used to process loans for 
multifamily housing and otherwise managing such housing. Such 
improvements shall be made within the 5-year period beginning upon the 
appropriation of such amounts and such amount shall remain available 
until the expiration of such 5-year period.

SEC. 7. PLAN FOR PRESERVING AFFORDABILITY OF RENTAL PROJECTS.

    (a) Plan.--The Secretary of Agriculture (in this section referred 
to as the ``Secretary'') shall submit a written plan to the Congress, 
not later than the expiration of the 6-month period beginning on the 
date of the enactment of this Act, for preserving the affordability for 
low-income families of rental projects for which loans were made under 
section 515 or made to nonprofit or public agencies under section 514 
and avoiding the displacement of tenant households, which shall--
            (1) set forth specific performance goals and measures;
            (2) set forth the specific actions and mechanisms by which 
        such goals will be achieved;
            (3) set forth specific measurements by which progress 
        towards achievement of each goal can be measured;
            (4) provide for detailed reporting on outcomes; and
            (5) include any legislative recommendations to assist in 
        achievement of the goals under the plan.
    (b) Advisory Committee.--
            (1) Establishment; purpose.--The Secretary shall establish 
        an advisory committee whose purpose shall be to assist the 
        Secretary in preserving section 515 properties and section 514 
        properties owned by nonprofit or public agencies through the 
        multifamily housing preservation and revitalization program 
        under section 545 and in implementing the plan required under 
        subsection (a).
            (2) Member.--The advisory committee shall consist of 14 
        members, appointed by the Secretary, as follows:
                    (A) A State Director of Rural Development for the 
                Department of Agriculture.
                    (B) The Administrator for Rural Housing Service of 
                the Department of Agriculture.
                    (C) Two representatives of for-profit developers or 
                owners of multifamily rural rental housing.
                    (D) Two representatives of non-profit developers or 
                owners of multifamily rural rental housing.
                    (E) Two representatives of State housing finance 
                agencies.
                    (F) Two representatives of tenants of multifamily 
                rural rental housing.
                    (G) One representative of a community development 
                financial institution that is involved in preserving 
                the affordability of housing assisted under sections 
                514, 515, and 516 of the Housing Act of 1949.
                    (H) One representative of a nonprofit organization 
                that operates nationally and has actively participated 
                in the preservation of housing assisted by the Rural 
                Housing Service by conducting research regarding, and 
                providing financing and technical assistance for, 
                preserving the affordability of such housing.
                    (I) One representative of low-income housing tax 
                credit investors.
                    (J) One representative of regulated financial 
                institutions that finance affordable multifamily rural 
                rental housing developments.
            (3) Meetings.--The advisory committee shall meet not less 
        often than once each calendar quarter.
            (4) Functions.--In providing assistance to the Secretary to 
        carry out its purpose, the advisory committee shall carry out 
        the following functions:
                    (A) Assisting the Rural Housing Service of the 
                Department of Agriculture to improve estimates of the 
                size, scope, and condition of rental housing portfolio 
                of the Service, including the time frames for maturity 
                of mortgages and costs for preserving the portfolio as 
                affordable housing.
                    (B) Reviewing current policies and procedures of 
                the Rural Housing Service regarding preservation of 
                affordable rental housing financed under sections 514, 
                515, 516, and 538 of the Housing Act of 1949, the 
                Multifamily Preservation and Revitalization 
                Demonstration program (MPR), and the rental assistance 
                program and making recommendations regarding 
                improvements and modifications to such policies and 
                procedures.
                    (C) Providing ongoing review of Rural Housing 
                Service program results.
                    (D) Providing reports to the Congress and the 
                public on meetings, recommendations, and other findings 
                of the advisory committee.
            (5) Travel costs.--Any amounts made available for 
        administrative costs of the Department of Agriculture may be 
        used for costs of travel by members of the advisory committee 
        to meetings of the committee.

SEC. 8. COVERED HOUSING PROGRAMS.

    Paragraph (3) of section 41411(a) of the Violence Against Women Act 
of 1994 (34 U.S.C. 12491(a)(3)) is amended--
            (1) in subparagraph (I), by striking ``and'' at the end;
            (2) by redesignating subparagraph (J) as subparagraph (K); 
        and
            (3) by inserting after subparagraph (I) the following new 
        subparagraph:
                    ``(J) rural development housing voucher assistance 
                provided by the Secretary of Agriculture pursuant to 
                section 542 of the Housing Act of 1949 (42 U.S.C. 
                1490r), without regard to subsection (b) of such 
                section, and applicable appropriation Acts; and''.
                                 <all>