,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #dadf  ,,in ,,the ,,house ,,of  
,,representatives  ,march #d1 #bjad ,mr4
 ,paulsen introduced the following bill2
 which was referred to the ,committee on
 ,financial ,services  ,a ,,bill  ,to   
amend the ,low-,income ,housing         
,preservation and ,resident             
,homeownership ,act of #aiij4  #a4      
,short title ,this ,act may be cited as 
the ,preservation ,enhancement and      
,savings ,opportunity ,act of #bjad4    
#b4 ,distributions and residual receipts
 ,section #bbb of the ,low-,income      
,housing ,preservation and ,resident    
,homeownership ,act of #aiij 7#ab       
,u4,s4,c4 #daab7 is amended by adding at
 the end the following new subsection3  
7e7 ,distribution and residual receipts 
7#a7 ,authority ,after the date of the  
enactment of the ,preservation          
,enhancement and ,savings ,opportunity  
,act of #bjad1 the owner of a property  
subject to a plan of action or use      
agreement pursuant to this section shall

 be entitled to distribute--  7,a7      
annually1 all surplus cash generated by 
the property2 and  7,b7 upon request    
made to the ,secretary and              
notwithstanding any conflicting         
provision in such use agreement2 any    
funds accumulated in a residual receipts
 account1 but only if the owner is in   
material compliance with such use       
agreement4  7#b7 ,operation of property 
,an owner that distributes any amounts  
pursuant to paragraph 7#a7 shall--  7,a7
 continue to operate the property in    
accordance with the affordability       
provisions of the use agreement for the 
property for the remaining useful life  
of the property2  7,b7 as required by   
the plan of action for the property1    
continue to renew or extend any         
project-based rental assistance contract
 for a term of not less than #bj years2 
and  7,c7 if the owner has an existing  
multi-year project-based rental         
assistance contract for less than #bj   
years1 have the option to extend the    

contract to a #bj-year term4  4  #c4    
,future refinancings ,section #bad of   
the ,low-,income ,housing ,preservation 
and ,resident ,homeownership ,act of    
#aiij 7#ab ,u4,s4,c4 #dajd7 is amended  
by adding at the end the following new  
subsection3  7c7 ,future financing      
,neither this section1 nor any plan of  
action or use agreement implementing    
this section1 shall restrict an owner   
from obtaining a new loan or refinancing
 an existing loan secured by the        
project1 or from distributing the       
proceeds of such a loan2 except that1 in
 conjunction with such refinancing--    
7#a7 the owner shall provide for        
adequate rehabilitation pursuant to a   
capital needs assessment to ensure      
long-term sustainability of the property
 satisfactory to the lender or bond     
issuance agency2  7#b7 any resulting    
budget-based rent increase shall include
 debt service on the new financing1     
commercially reasonable debt service    
coverage1 and replacement reserves as   

required by the lender2 and  7#c7 rent  
increases for units not covered by a    
project-based rental subsidy contract or
 tenant-based rental subsidy shall be   
limited to #aj percent4  4