In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Cabin Fee Act of 
2012''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Cabin user fees.
Sec. 4. Payment of cabin transfer fees.
Sec. 5. Right of appeal and judicial review.
Sec. 6. Effect.
Sec. 7. Regulations.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Authorization; authorize.--The terms ``authorization'' 
        and ``authorize'' mean the issuance of a special use permit for 
        the use and occupancy of National Forest System land by a cabin 
        owner under the Recreation Residence Program.
            (2) Cabin.--The term ``cabin'' means a privately built and 
        owned recreation residence and related improvements on National 
        Forest System land that--
                    (A) is authorized for private use and occupancy; 
                and
                    (B) may be sold or transferred between private 
                parties.
            (3) Cabin owner.--The term ``cabin owner'' means--
                    (A) a person authorized by the Secretary to use and 
                to occupy a cabin; and
                    (B) a trust, heir, or assign of a person described 
                in subparagraph (A).
            (4) Cabin transfer fee.--The term ``cabin transfer fee'' 
        means a fee that is paid to the United States on the transfer 
        of a cabin between private parties for money or other 
        consideration that results in the issuance of a new permit.
            (5) Cabin user fee.--The term ``cabin user fee'' means an 
        annual fee paid to the United States by a cabin owner in 
        accordance with an authorization for the use and occupancy of a 
        cabin.
            (6) Current appraisal cycle.--The term ``current appraisal 
        cycle'' means the completion of Forest Service review and 
        acceptance of--
                    (A) initial typical lot appraisals; and
                    (B) second appraisals, if ordered by cabin owners 
                and approved by the Forest Service.
            (7) Current cabin user fee.--The term ``current cabin user 
        fee'' means the most recent cabin user fee, as adjusted under 
        section 3(c).
            (8) Lot.--The term ``lot'' means a parcel of National 
        Forest System land on which a person is authorized to build, 
        use, occupy, and maintain a cabin.
            (9) National forest system.--The term ``National Forest 
        System'' has the meaning given that term in section 11 of the 
        Forest and Rangeland Renewable Resources Planning Act of 1974 
        (16 U.S.C. 1609).
            (10) Recreation residence program.--The term ``Recreation 
        Residence Program'' means the Recreation Residence Program 
        established under the last paragraph under the heading ``FOREST 
        SERVICE'' in the Act of March 4, 1915 (16 U.S.C. 497).
            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Chief of the Forest Service.
            (12) Typical lot.--The term ``typical lot'' means a cabin 
        lot, or group of cabin lots, in a tract that is selected for 
        use in an appraisal as being representative of, and that has 
        similar value characteristics as, other lots or groups of lots 
        within the tract.

SEC. 3. CABIN USER FEES.

    (a) Payment of Cabin User Fees.--Cabin owners shall pay an annual 
cabin user fee established by the Secretary in accordance with this 
section.
    (b) Initial Cabin User Fees.--
            (1) Establishment.--The Secretary shall establish initial 
        cabin user fees in accordance with this subsection.
            (2) Assignment to value tiers.--On completion of the 
        current appraisal cycle, as required by paragraph (4), the 
        Secretary shall assign each permitted lot on National Forest 
        System land to 1 of 10 tiers based on the following 
        considerations:
                    (A) Before assigning the lots to tiers, all 
                appraised lot values shall be adjusted, or normalized, 
                for price changes occurring after the appraisal, in 
                accordance with the National Association of 
                Homebuilders/Wells Fargo Housing Opportunity Index.
                    (B) Second appraisal values shall supersede initial 
                lot appraisal values for the normalization and ranking 
                process under subparagraph (A).
                    (C) The tiers shall be established, on a national 
                basis, according to relative lot value, with lots 
                having the lowest adjusted appraised value assigned to 
                tier 1 and lots having the highest adjusted appraised 
                value assigned to tier 10.
                    (D) The number of lots (by percentage) assigned to 
                each tier is contained in the table set forth in 
                paragraph (3).
                    (E) Data from incomplete appraisals may not be used 
                to establish the fee tiers under this subsection.
                    (F) Until assigned to a tier under this subsection, 
                the Secretary shall assess (and may adjust annually 
                subject to clause (ii)) an interim fee for permitted 
                cabin lots (including lots with incomplete appraisals) 
                in an amount equal to the lesser of--
                            (i) $5,000; or
                            (ii) the amount of the current cabin user 
                        fee, as determined under the Cabin User Fee 
                        Fairness Act of 2000 (16 U.S.C. 6201 et seq.), 
                        which amount the Secretary may increase 
                        annually by not more than 25 percent, except 
                        that the increased fee shall not exceed the 
                        otherwise scheduled fee determined under the 
                        Cabin User Fee Fairness Act of 2000.
            (3) Amount of initial cabin user fees.--The initial cabin 
        user fees, based on the assignments under paragraph (2), are as 
        follows:


------------------------------------------------------------------------
                          Approximate Percent of
        Fee Tier            Permits Nationally          Fee Amount
------------------------------------------------------------------------
               Tier 1                5 percent                     $500
------------------------------------------------------------------------
               Tier 2               12 percent                   $1,000
------------------------------------------------------------------------
               Tier 3               22 percent                   $1,500
------------------------------------------------------------------------
               Tier 4               22 percent                   $2,000
------------------------------------------------------------------------
               Tier 5               10 percent                   $2,500
------------------------------------------------------------------------
               Tier 6                9 percent                   $3,000
------------------------------------------------------------------------
               Tier 7                7 percent                   $3,500
------------------------------------------------------------------------
               Tier 8                5 percent                   $4,000
------------------------------------------------------------------------
               Tier 9                5 percent                   $4,500
------------------------------------------------------------------------
              Tier 10                3 percent                   $5,000
------------------------------------------------------------------------

            (4) Deadline for completion of current appraisal cycle.--
        Not later than 3 years after the date of enactment of this Act, 
        the Secretary shall complete the current appraisal cycle.
            (5) Effective date.--The initial cabin user fees required 
        by this subsection shall take effect beginning with the first 
        calendar year beginning after the completion of the current 
        appraisal cycle.
    (c) Annual Adjustments of Cabin User Fee.--Once initial cabin user 
fees have been assessed, based on the tier assignments under subsection 
(b)(2), the Secretary shall use changes in the Implicit Price Deflator 
for the Gross Domestic Product published by the Bureau of Economic 
Analysis of the Department of Commerce, applied on a 5-year rolling 
average, to assess an annual adjustment to cabin user fees.
    (d) Effect of Destruction, Substantial Damage, or Loss of Access.--
            (1) In general.--The Secretary shall reduce the cabin user 
        fee to $100 per year for a cabin if--
                    (A) the cabin is destroyed or suffers substantial 
                damage in an amount that is greater than 50 percent of 
                replacement cost of the cabin; or
                    (B) access to the cabin is significantly impaired, 
                whether by catastrophic events, natural causes, or 
                governmental actions.
            (2) Term of reduced fee.--The reduced fee under paragraph 
        (1) shall be in effect until the later of--
                    (A) the last day of the year in which the 
                destruction or impairment occurs; or
                    (B) the date on which the cabin may be lawfully 
                reoccupied and normal access has been restored.

SEC. 4. PAYMENT OF CABIN TRANSFER FEES.

    As a condition of the issuance by the Secretary of a new 
authorization for the use and occupancy of the cabin, the cabin owner 
transferring the cabin shall pay to the Secretary a cabin transfer fee 
in the amount of $1,200.

SEC. 5. RIGHT OF APPEAL AND JUDICIAL REVIEW.

    (a) Right of Appeal.--
            (1) In general.--Notwithstanding any action of a cabin 
        owner to exercise rights in accordance with section 6, the 
        Secretary shall by regulation grant to the cabin owner the 
        right to an administrative appeal of the determination of a new 
        cabin user fee, fee tier, or whether or not to reduce a cabin 
        user fee under section 3(d).
            (2) Applicable law.--An appeal under paragraph (1) shall be 
        pursuant to the appeal process provided under subpart C of part 
        251 of title 36, Code of Federal Regulations (or a successor 
        regulation).
    (b) Judicial Review.--
            (1) In general.--A cabin owner that contests a final 
        decision of the Secretary under this Act may bring a civil 
        action in United States district court.
            (2) Venue.--The venue for an action brought before the 
        United States district court under this subsection shall be in 
        the Federal judicial district in which the cabin is located.
            (3) Effect on mediation.--Nothing in this Act precludes a 
        person from seeking mediation for an action under this Act.

SEC. 6. EFFECT.

    (a) In General.--Nothing in this Act limits or restricts any right, 
title, or interest of the United States in or to any land or resource.
    (b) Special Rule for Alaska.--In determining a cabin user fee in 
the State of Alaska, the Secretary shall not establish or impose a 
cabin user fee or a condition affecting a cabin user fee that is 
inconsistent with 1303(d) of the Alaska National Interest Lands 
Conservation Act (16 U.S.C. 3193(d)).

SEC. 7. REGULATIONS.

    Not later than December 31, 2013, the Secretary shall issue 
regulations to carry out this Act.

            Passed the House of Representatives September 10, 2012.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
Cabin Fee Act of 2012 - Directs the Secretary of Agriculture (USDA) to set an annual fee for, and requires the payment of such fee to the United States by, an authorized owner of a privately built and owned recreational cabin located on National Forest System land.

Reduces such fee to $100 annually if access to a cabin is significantly impaired, either by natural causes or governmental actions.

 Requires payment of a transfer fee to the United States upon the transfer of a cabin between private parties for consideration.

Requires the Secretary to grant a cabin owner the right to administrative appeal of a cabin fee decision, which may be reviewed by bringing a civil action in U.S. district court.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Privacy and Civil Liberties 
Oversight Enhancement Act''.

SEC. 2. SUBMISSION OF REPORTS UNDER THE FOREIGN INTELLIGENCE 
              SURVEILLANCE ACT OF 1978 TO THE PRIVACY AND CIVIL 
              LIBERTIES OVERSIGHT BOARD.

    (a) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.).
    (b) Foreign Intelligence Surveillance Court Rules.--Section 
103(g)(2) (50 U.S.C. 1803(g)(2)) is amended by adding at the end the 
following new subparagraph:
            ``(H) The Privacy and Civil Liberties Oversight Board.''.
    (c) Report of Electronic Surveillance.--Section 107 (50 U.S.C. 
1807) is amended in the matter preceding paragraph (1) by striking 
``Administrative Office of the United States Court and to Congress'' 
and inserting ``Administrative Office of the United States Court, 
Congress, and the Privacy and Civil Liberties Oversight Board''.
    (d) Oversight of Electronic Surveillance.--Section 108 (50 U.S.C. 
1808) is amended--
            (1) in the heading, by striking ``congressional''; and
            (2) in subsection (a)(1), by striking ``the House Permanent 
        Select Committee on Intelligence and the Senate Select 
        Committee on Intelligence, and the Committee on the Judiciary 
        of the Senate,'' and inserting ``the Permanent Select Committee 
        on Intelligence and the Committee on the Judiciary of the House 
        of Representatives, the Select Committee on Intelligence and 
        the Committee on the Judiciary of the Senate, and the Privacy 
        and Civil Liberties Oversight Board''.
    (e) Oversight of Physical Searches.--Section 306 (50 U.S.C. 1826) 
is amended--
            (1) in the heading, by striking ``congressional''; and
            (2) in the matter preceding paragraph (1)--
                    (A) in the first sentence, by striking ``the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives and the Select Committee on 
                Intelligence of the Senate, and the Committee on the 
                Judiciary of the Senate,'' and inserting ``the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives, the Select Committee on 
                Intelligence of the Senate, the Committees on the 
                Judiciary of the House of Representatives and the 
                Senate, and the Privacy and Civil Liberties Oversight 
                Board''; and
                    (B) in the second sentence, by striking ``those 
                committees and the Committee on the Judiciary of the 
                House of Representatives'' and inserting ``those 
                committees and the Privacy and Civil Liberties 
                Oversight Board''.
    (f) Oversight of Pen Registers and Trap and Trace Devices.--Section 
406 (50 U.S.C. 1846) is amended--
            (1) in the heading, by striking ``congressional'';
            (2) in subsection (a), by striking ``the Permanent Select 
        Committee on Intelligence of the House of Representatives and 
        the Select Committee on Intelligence of the Senate, and the 
        Committee on the Judiciary of the House of Representatives and 
        the Committee on the Judiciary of the Senate,'' and inserting 
        ``the Permanent Select Committee on Intelligence of the House 
        of Representatives, the Select Committee on Intelligence of the 
        Senate, the Committees on the Judiciary of the House of 
        Representatives and the Senate, and the Privacy and Civil 
        Liberties Oversight Board''; and
            (3) in subsection (b), by striking ``the committees 
        referred to in subsection (a) and to the Committees on the 
        Judiciary of the House of Representatives and the Senate'' and 
        inserting ``the committees referred to in subsection (a) and 
        the Privacy and Civil Liberties Oversight Board''.
    (g) Oversight of Production of Certain Business Records.--Section 
502 (50 U.S.C. 1862) is amended--
            (1) in the heading, by striking ``congressional'';
            (2) in subsection (a), by striking ``the Permanent Select 
        Committee on Intelligence of the House of Representatives and 
        the Select Committee on Intelligence and the Committee on the 
        Judiciary of the Senate'' and inserting ``the Permanent Select 
        Committee on Intelligence of the House of Representatives, the 
        Select Committee on Intelligence of the Senate, the Committees 
        on the Judiciary of the House of Representatives and the 
        Senate, and the Privacy and Civil Liberties Oversight Board''; 
        and
            (3) in subsection (b), by striking ``the House and Senate 
        Committees on the Judiciary and the House Permanent Select 
        Committee on Intelligence and the Senate Select Committee on 
        Intelligence'' and inserting ``the Permanent Select Committee 
        on Intelligence of the House of Representatives, the Select 
        Committee on Intelligence of the Senate, the Committees on the 
        Judiciary of the House of Representatives and the Senate, and 
        the Privacy and Civil Liberties Oversight Board''.
    (h) Semiannual Report of the Attorney General.--Section 601 (50 
U.S.C. 1871) is amended--
            (1) in subsection (a), by striking ``and the Committees on 
        the Judiciary of the House of Representatives and the Senate,'' 
        and inserting ``the Committees on the Judiciary of the House of 
        Representatives and the Senate, and the Privacy and Civil 
        Liberties Oversight Board'';
            (2) in subsection (c), by inserting ``and the Privacy and 
        Civil Liberties Oversight Board'' after ``subsection (a)''; and
            (3) in subsection (d), by inserting ``and the Privacy and 
        Civil Liberties Oversight Board'' after ``subsection (a)''.
    (i) Procedures for Targeting Certain Persons Outside the United 
States Other Than United States Persons.--Section 702(l) (50 U.S.C. 
1881a(l)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (B)(ii), by striking the period 
                and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) the Privacy and Civil Liberties Oversight 
                Board.'';
            (2) in paragraph (2)(D)--
                    (A) in clause (ii), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in clause (iii)(II), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(iv) the Privacy and Civil Liberties 
                        Oversight Board.''; and
            (3) in paragraph (3)(C)--
                    (A) in clause (iii), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in clause (iv)(II), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(v) the Privacy and Civil Liberties 
                        Oversight Board.''.
    (j) Oversight of Procedures for Targeting Certain Persons Outside 
the United States Other Than United States Persons.--Section 707(a) (50 
U.S.C. 1881f(a)) is amended--
            (1) in the heading, by striking ``congressional''; and
            (2) by inserting ``and the Privacy and Civil Liberties 
        Oversight Board'' before ``concerning the implementation of 
        this title''.
Privacy and Civil Liberties Oversight Enhancement Act - Amends the Foreign Intelligence Surveillance Act of 1978 (FISA) to include the Privacy and Civil Liberties Oversight Board as a recipient of: (1) FISA court procedural rule changes, decisions, and pleadings; (2) the Attorney General's (DOJ) annual report to the Administrative Office of the U.S. Court regarding applications and orders for electronic surveillance; (3) the Attorney General's reports to Congress concerning electronic surveillance, physical searches, pen registers and trap and trace devices, production of tangible things (commonly referred to as business records), the number of persons targeted by the government under FISA authorities, and procedures for targeting persons; (4) reports by the Attorney General and the Director of National Intelligence (DNI) assessing compliance with minimization procedures for targeting persons reasonably believed to be located outside the United States other than U.S. persons, including reviews of the number of targets who were later determined to be located in the United States; and (5) annual reports of each element of the intelligence community authorized to acquire targeted foreign intelligence information.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Affordable Housing Preservation Act 
of 2008''.

SEC. 2. AFFORDABLE HOUSING PRESERVATION PILOT PROGRAM.

    (a) Establishment.--The Secretary of Housing and Urban Development 
shall establish a pilot program under which funds in the residual 
receipts account of an eligible multifamily housing property are 
transferred, at the time of a qualified sale or exchange, to a 
preservation entity.
    (b) Purpose.--The purpose of the pilot program established under 
this section is to facilitate the transfer of multifamily housing 
projects with expiring section 8 housing assistance payments contracts 
to preservation entities that are committed to maintaining the 
affordability and preservation of such projects by allowing expanded 
access to existing residual receipts to assist with the acquisition and 
rehabilitation of the project.
    (c) Use of Funds.--A preservation entity that acquires an eligible 
multifamily housing property through a qualified sale or exchange shall 
use the funds in the residual receipts account transferred to it--
            (1) to pay for rehabilitation costs approved by the housing 
        agency;
            (2) to deposit funds into the replacement reserve account 
        of the property;
            (3) to pay for social and other services that directly 
        benefit the tenants of such property, but in any 1 year such 
        payments may not exceed 10 percent of the balance of the 
        residual receipts account of the property at the end of the 
        prior fiscal year;
            (4) to pay for costs associated with the acquisition of the 
        property, but such payments may not exceed 50 percent of the 
        amount in the residual receipts account of the property at the 
        time of acquisition; and
            (5) to pay for any other costs that have been approved by 
        the housing agency and will directly benefit the tenants of the 
        property.
    (d) Responsibilities of the Secretary.--The Secretary of Housing 
and Urban Development, or his or her designee, shall--
            (1) determine whether the plan for rehabilitation and 
        operation of a preservation entity--
                    (A) maintains and restores the decent, safe, and 
                sanitary condition of the eligible multifamily housing 
                property; and
                    (B) is viable for not less than 30 years; and
            (2) monitor the affordability and use restrictions for the 
        eligible multifamily housing property.
    (e) Penalty for Noncompliance.--If the Secretary of Housing and 
Urban Development determines that all or a portion of an eligible 
multifamily housing property acquired by a preservation entity under 
this section is not in compliance with the requirements of this 
section, the preservation entity shall reimburse the Secretary an 
amount equal to the amount originally transferred from the residual 
receipts account at the time of acquisition, less the product of 3.33 
percent of such amount, multiplied by the number of years after the 
qualified sale or exchange that the property was in compliance with the 
requirements of this section.
    (f) Designation.--The Secretary shall, not later than 6 months 
after the date of enactment of this Act, designate not less than 3 
States in which the program established under this section shall be 
carried out. In selecting the States in which to carry out the program, 
the Secretary shall--
            (1) consider States with the greatest number of units 
        receiving project-based housing assistance payments under 
        section 8 of the United States Housing Act of 1937 (42 U.S.C. 
        1437f) where such units are located in active multifamily 
        housing projects whose section 8 housing assistance payments 
        contracts are set to expire between fiscal years 2009 and 
        fiscal years 2011;
            (2) consider States with eligible multifamily housing 
        properties that have residual receipt account balances that can 
        provide a meaningful preservation resource;
            (3) aim for a regionally diverse sample of States; and
            (4) consider the extent to which market forces may drive 
        the conversion of eligible low-income housing to market-based 
        rents.
    (g) Report to Congress.--
            (1) Timing of report.--Not later than 3 years after the 
        initiation of the pilot program established under this section, 
        the Secretary of Housing and Urban Development shall submit a 
        report to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate and the Committee on Financial Services of the 
        House of Representatives.
            (2) Content of report.--The report required under paragraph 
        (1) shall include an analysis of--
                    (A) the effectiveness of expanding the use of 
                amounts in the residual receipts accounts of eligible 
                multifamily housing properties to include preservation 
                activities; and
                    (B) which States or regions of the United States 
                could most benefit from the expansion of such eligible 
                uses.
    (h) Effective Date.--This section shall apply to qualified sales or 
exchanges made during the period beginning December 31, 2007 and ending 
December 31, 2013.
    (i) Definitions.--In this section, the following definitions shall 
apply:
            (1) Affordability and use restrictions.--The term 
        ``affordability and use restrictions'' means the affordability 
        and use restrictions in connection with project-based housing 
        assistance payments made under section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f).
            (2) Extended use period.--The term ``extended use period'' 
        means the period beginning on the date of sale and ending on 
        the earlier of--
                    (A) 30 years after the close of the sale; or
                    (B) the date that the property is acquired by 
                foreclosure (or instrument in lieu of foreclosure).
            (3) Eligible multifamily housing property.--The term 
        ``eligible multifamily housing property'' means a project 
        that--
                    (A) is receiving project-based housing assistance 
                payments under section 8 of the United States Housing 
                Act of 1937 (42 U.S.C. 1437f); and
                    (B) was financed pursuant to part 883 of title 24, 
                Code of Federal Regulations, on or after February 29, 
                1980.
            (4) Housing agency.--The term ``housing agency'' means, 
        with respect to any eligible multifamily housing property, the 
        housing agency which administers housing assistance with 
        respect to such property.
            (5) Preservation entity.--The term ``preservation entity'' 
        means a housing agency, organization, or entity (for profit or 
        nonprofit) approved by the Secretary of Housing and Urban 
        Development, or his or her designee, that has the capacity and 
        commitment to successfully acquire and preserve an eligible 
        multifamily housing property.
            (6) Qualified sale or exchange.--
                    (A) In general.--The term ``qualified sale or 
                exchange'' means the sale of an eligible multifamily 
                housing property to, or an exchange of such property 
                with, a preservation entity which agrees to maintain 
                affordability and use restrictions regarding the 
                property that are--
                            (i) for a term of not less than the 
                        extended use period; and
                            (ii) legally enforceable.
                    (B) Future applicability of restrictions.--The 
                restrictions under subparagraph (A) shall be--
                            (i) binding on all successors of the 
                        preservation entity; and
                            (ii) recorded as a restrictive covenant on 
                        the property pursuant to State law.
                    (C) Certification by program administrator.--The 
                term ``qualified sale or exchange'' shall not include 
                any sale or exchange of property unless the housing 
                agency certifies that--
                            (i) the transferee with respect to such 
                        property is a preservation entity;
                            (ii) affordability and use restrictions 
                        will be maintained with respect to such 
                        property during the extended use period; and
                            (iii) new capital will be expended that--
                                    (I) maintains or restores the 
                                decent, safe, and sanitary condition of 
                                the property; and
                                    (II) funds adequate reserves.
            (7) Residual receipts.--The term ``residual receipts'' 
        means funds generated by a property in excess of the amount 
        needed for operating expenses, operating reserve requirements, 
        and allowable distributions to project owners.
    (j) Residual Receipts Not Treated as Federal Funds.--For the 
purposes of section 42 of the Internal Revenue Code of 1986, residual 
receipts used pursuant to the pilot program established under this 
section shall not be considered Federal funds.

Affordable Housing Preservation Act of 2008 - Directs the Secretary of Housing and Urban Development (HUD) to establish a pilot program under which funds in the residual receipts account of an eligible multifamily housing property are transferred, at the time of a qualified sale or exchange, to preservation entities to facilitate the transfer of multifamily housing projects with expiring section 8 housing assistance payments contracts under the United States Housing Act of 1937.

Defines "preservation entity" as a HUD-approved housing agency, organization, or entity (for profit or nonprofit) that has the capacity and commitment to successfully acquire and preserve an eligible multifamily housing property.

Requires the Secretary to: (1) determine whether the preservation entity's plan for rehabilitation and operation maintains and restores the decent, safe, and sanitary condition of the eligible multifamily housing property, and is viable for at least 30 years; and (2) monitor the affordability and use restrictions for the property.

Imposes penalties on preservation entities for noncompliance with this Act.

Requires the Secretary to designate at least three states to participate in the pilot program.

States that grants shall be used to: (1) pay for rehabilitation costs approved by the housing agency; (2) deposit funds into the property's replacement reserve account; and (3) pay for social and other services that directly benefit the tenants of such property, its associated acquisition costs, and any other costs that have been approved by the housing agency and will directly benefit such tenants.