,i #aahth ,,congress #b;d ,session ,h4 ,r4 #ajdba ,,in ,,the ,,house ,,of ,,representatives ,december #af1 #bjbd,mr4 ,cleaver introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to establish a permanent rural housing preservation and revitalization program1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,strategy and ,investment in ,rural ,housing ,preservation ,act of #bjbc4 #b4 ,permanent establishment of housing preservation and revitalization program ,title ,v of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adga et seq47 is amended by adding at the end the following new section3 #ede4 ,housing preservation and revitalization program 7a7 ,establishment ,the ,secretary shall carry out a program under this section for the preservation and revitalization of multifamily rental housing projects financed under section #eae or both sections #ead and #eaf4 7b7 ,notice of maturing loans 7#a7 ,to owners ,on an annual basis1 the ,secretary shall provide written notice to each owner of a property financed under section #eae or both sections #ead and #eaf that will mature within the #d-year period beginning upon the provision of the notice1 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 7f74 7#b7 ,to tenants 7,a7 ,in general ,for each property financed under section #eae or both sections #ead and #eaf1 not later than the date that is #b years before the date that the loan will mature1 the ,secretary shall provide written notice to each household residing in the property that informs them of the date of the loan maturity1 the possible actions that may happen with respect to the property upon that maturity1 and how to protect their right to reside in federally assisted housing after that maturity4 7,b7 ,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 languages4 7c7 ,loan restructuring ,under the program under this section1 in any circumstance in which the ,secretary proposes a restructuring to an owner or an owner proposes a restructuring to the ,secretary1 the ,secretary may restructure such existing housing loans1 as the ,secretary considers appropriate1 for the purpose of ensuring that those projects have sufficient resources to preserve the projects to provide safe and affordable housing for low-income residents and farm laborers1 by-- 7#a7 reducing or eliminating interest2 7#b7 deferring loan payments2 7#c7 subordinating1 reducing1 or reamortizing loan debt2 and 7#d7 providing other financial assistance1 including advances1 payments1 and incentives 7including the ability of owners to obtain reasonable returns on investment7 required by the ,secretary4 7d7 ,renewal of rental assistance 7#a7 ,in general ,when the ,secretary proposes to restructure a loan or agrees to the proposal of an owner to restructure a loan pursuant to subsection 7c71 the ,secretary shall offer to renew the rental assistance contract under section #eba7;a77#b7 for a #bj-year term that is subject to annual appropriations1 provided that the owner agrees to bring the property up to or maintain the property at such standards that will ensure maintenance of the property as decent1 safe1 and sanitary housing for the full term of the rental assistance contract4 7#b7 ,additional rental assistance 7,a7 ,in general ,with respect to a project described in paragraph 7#a71 if rental assistance is not available for all households in the project for which the loan is being restructured pursuant to subsection 7c71 the ,secretary may extend such additional rental assistance to unassisted households at that project as is necessary to make the project safe and affordable to low-income households4 7,b7 ,unavailable property ,in the event that a property is not available to provide additional rental assistance to households under subparagraph 7,a71 the ,secretary may offer a rural housing voucher to those households4 7e7 ,restrictive use agreements 7#a7 ,requirement ,as part of the preservation and revitalization agreement for a project1 the ,secretary shall obtain a restrictive use agreement that obligates the owner to operate the project in accordance with this title4 7#b7 ,term 7,a7 ,no extension of rental assistance contract ,except when the ,secretary enters into a #bj-year extension of the rental assistance contract for a project1 the term of the restrictive use agreement for the project shall be consistent with the term of the restructured loan for the project4 7,b7 ,extension of rental assistance contract ,if the ,secretary enters into a #bj-year extension of the rental assistance contract for a project1 the term of the restrictive use agreement for the project shall be for #bj years4 7,c7 ,termination ,the ,secretary may terminate the #bj-year use restrictive use agreement for a project before the end of the term of the agreement if the #bj-year rental assistance contract for the project with the owner is terminated at any time for reasons outside the control of the owner4 7f7 ,decoupling of rental assistance 7#a7 ,renewal of rental assistance contract ,if the ,secretary determines that a maturing loan for a project cannot reasonably be restructured in accordance with subsection 7c7 because it is not financially feasible or the owner does not agree with the proposed restructuring1 and the project was operating with rental assistance under section #eba1 the ,secretary may renew the rental assistance contract1 notwithstanding any provision of section #eba1 for a term1 subject to annual appropriations1 of #bj years1 provided that the owner enters into a restrictive use agreement4 7#b7 ,additional rental assistance ,with respect to a project described in paragraph 7#a71 if rental assistance is not available for all households in the project1 the ,secretary may extend such additional rental assistance to unassisted households at that project as is necessary to make the project safe and affordable to low-income households4 7#c7 ,rents ,any agreement to extend the term of the rental assistance contract under section #eba for a project shall obligate the owner to continue to maintain the project as decent1 safe and sanitary housing and to operate the development in accordance with this title1 except that rents shall be based on the lesser of-- 7,a7 the budget-based needs of the project2 or 7,b7 the operating cost adjustment factor as a payment standard as provided under section #ebd of the ,multifamily ,assisted ,housing ,reform and ,affordability ,act of #aiig 7#db ,u4,s4,c4 #adcg note74 7#d7 ,conditions for approval 7,a7 ,plan ,before the approval of a rental assistance contract authorized under this section1 the ,secretary shall require the owner to submit to the ,secretary a plan that identifies financing sources and a timetable for renovations and improvements determined to be necessary by the ,secretary to maintain and preserve the project4 7,b7 ,automatic approval ,if a plan submitted under subparagraph 7,a7 is not acted upon by the ,secretary within #cj days of the submission1 the rental assistance contract is automatically approved for not more than a #a-year period4 7g7 ,multifamily housing transfer technical assistance ,under the program under this section1 the ,secretary may provide grants to qualified nonprofit organizations and public housing agencies to provide technical assistance1 including financial and legal services1 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 housing4 7h7 ,transfer of rental assistance ,after the loan or loans for a rental project originally financed under section #eae or both sections #ead and #eaf have matured or have been prepaid and the owner has chosen not to restructure the loan pursuant to subsection 7c7-- 7#a7 a tenant residing in the project shall have #ah months before loan maturation or prepayment to transfer the rental assistance assigned to the unit of the tenant to another rental project originally financed under section #eae or both sections #ead and #eaf1 and such tenants will have priority for admission over other applicants2 and 7#b7 the owner of the initial project may rent the previous unit of the tenant to a new tenant without income restrictions4 7i7 ,administrative expenses ,of any amounts made available for the program under this section for any fiscal year1 the ,secretary may use not more than #a1jjj1jjj for administrative expenses for carrying out such program4 7j7 ,authorization of appropriations ,there is authorized to be appropriated for the program under this section #bjj1jjj1jjj for each of fiscal years #bjbd through #bjbh4 7k7 ,rulemaking 7#a7 ,in general ,not later than #ahj days after the date of enactment of the ,strategy and ,investment in ,rural ,housing ,preservation ,act of #bjbc1 the ,secretary shall-- 7,a7 publish an advance notice of proposed rulemaking2 and 7,b7 consult with appropriate stakeholders4 7#b7 ,interim final rule ,not later than #a year after the date of enactment of the ,strategy and ,investment in ,rural ,housing ,preservation ,act of #bjbc1 the ,secretary shall publish an interim final rule to carry out this section4 4 #c4 ,eligibility for rural housing vouchers ,section #edb of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adijr7 is amended by adding at the end the following3 7c7 ,eligibility of households in sections #ead1 #eae1 and #eaf projects 7#a7 ,in general ,the ,secretary may provide rural housing vouchers under this section for any low-income household 7including those not receiving rental assistance7 residing-- 7,a7 for a term longer than the remaining term of their lease in effect just prior to prepayment1 in a property financed with a loan made or insured under section #ead or #eae that has-- 7i7 been prepaid without restrictions imposed by the ,secretary pursuant to section #ejb7;c77#e77;,g77ii77,i72 7ii7 been foreclosed2 or 7iii7 matured after ,september #cj1 #bjje and the property is not receiving rental assistance under section #ede7;f72 or 7,b7 in a property assisted under section #ead or #eaf4 7#b7 ,priority ,the ,secretary shall prioritize the provision of rental housing vouchers under this section for projects owned by nonprofit organizations and their affiliates or public agencies4 4 #d4 ,amount of voucher assistance ,notwithstanding any other provision of law1 in the case of any rural housing voucher provided pursuant to section #edb of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adijr71 the amount of the monthly assistance payment for the household on whose behalf the assistance is provided shall be determined as provided in subsection 7a7 of such section #edb4 #e4 ,rental assistance contract authority ,section #eba7;d7 of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adij;a7d77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by redesignating subparagraphs 7,b7 and 7,c7 as subparagraphs 7,c7 and 7,d71 respectively2 7,b7 by inserting after subparagraph 7,a7 the following3 7,b7 upon request of an owner of a project financed under section #ead or #eae or an owner who has entered into a restrictive use agreement under section #ede7;e71 the ,secretary is authorized to enter into a renewal of such agreements for a period of #bj years or the term of the loan1 whichever is shorter1 subject to amounts made available in appropriations ,acts2 2 7,c7 in subparagraph 7,c71 as so redesignated1 by striking subparagraph 7,a7 and inserting subparagraphs 7,a7 and 7,b72 and 7,d7 in subparagraph 7,d71 as so redesignated1 by striking subparagraphs 7,a7 and 7,b7 and inserting subparagraphs 7,a71 7,b71 and 7,c72 and 7#b7 in paragraph 7#b7-- 7,a7 by striking shall and inserting may2 and 7,b7 by inserting 7other than the authority described in paragraph 7#a77;,b77 after this section4 #f4 ,funding for multifamily technical improvements 7a7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary of ,agriculture #ej1jjj1jjj for fiscal year #bjbd for improving the technology of the ,department of ,agriculture used to process loans for multifamily housing and otherwise managing that housing4 7b7 ,timeline ,the improvements required under subsection 7a7 shall be made within the #e-year period beginning upon the appropriation of amounts under subsection 7a71 and those amounts shall remain available until the expiration of that #e-year period4 #g4 ,plan for preserving affordability of rental projects 7a7 ,plan ,not later than #f months after the date of enactment of this ,act1 the ,secretary of ,agriculture 7in this section referred to as the ,secretary7 shall submit to ,congress a written plan for preserving the affordability for low-income families of rental projects for which loans were made under section #ead or #eae of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adhd1 #adhe7 and avoiding the displacement of tenant households1 which shall-- 7#a7 set forth specific performance goals and measures2 7#b7 set forth the specific actions and mechanisms by which those goals will be achieved2 7#c7 set forth specific measurements by which progress towards achievement of each goal can be measured2 7#d7 provide for detailed reporting on outcomes2 and 7#e7 include any legislative recommendations to assist in achievement of the goals under the plan4 7b7 ,advisory committee 7#a7 ,establishment2 purpose ,the ,secretary shall establish an advisory committee 7in this section referred to as the advisory committee7 to assist the ,secretary in-- 7,a7 preserving properties assisted under section #ead or #eae of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adhd1 #adhe7 through the multifamily housing preservation and revitalization program under section #ede of such ,act1 as added by section #b of this ,act2 and 7,b7 implementing the plan required under subsection 7a74 7#b7 ,member ,the advisory committee shall consist of #af members1 appointed by the ,secretary1 as follows3 7,a7 ,a ,state ,director of ,rural ,development for the ,department of ,agriculture4 7,b7 ,the ,administrator for ,rural ,housing ,service of the ,department of ,agriculture4 7,c7 ,two representatives of for-profit developers or owners of multifamily rural rental housing4 7,d7 ,two representatives of nonprofit developers or owners of multifamily rural rental housing4 7,e7 ,two representatives of ,state housing finance agencies4 7,f7 ,two representatives of tenants of multifamily rural rental housing4 7,g7 ,one representative of a community development financial institution that is involved in preserving the affordability of housing assisted under sections #ead1 #eae1 and #eaf of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adhd1 #adhe1 #adhf74 7,h7 ,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 regarding1 and providing financing and technical assistance for1 preserving the affordability of that housing4 7,i7 ,one representative of low-income housing tax credit investors4 7,j7 ,one representative of regulated financial institutions that finance affordable multifamily rural rental housing developments4 7,k7 ,two representatives from nonprofit organizations representing farmworkers1 including #a organization representing farmworker women4 7#c7 ,meetings ,the advisory committee shall meet not less often than once each calendar quarter4 7#d7 ,functions ,in providing assistance to the ,secretary to carry out the purpose of the advisory committee1 the advisory committee shall carry out the following functions3 7,a7 ,assisting the ,rural ,housing ,service of the ,department of ,agriculture to improve estimates of the size1 scope1 and condition of rental housing portfolio of the ,rural ,housing ,service1 including the time frames for maturity of mortgages and costs for preserving the portfolio as affordable housing4 7,b7 ,reviewing policies and procedures of the ,rural ,housing ,service regarding preservation of affordable rental housing financed under sections #ead1 #eae1 #eaf1 and #ech of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adhd1 #adhe1 #adhf1 #adijp-#b71 the ,multifamily ,preservation and ,revitalization ,demonstration program1 and the rental assistance program and making recommendations regarding improvements and modifications to those policies and procedures4 7,c7 ,providing ongoing review of ,rural ,housing ,service program results4 7,d7 ,providing reports to ,congress and the public on meetings1 recommendations1 and other findings of the advisory committee4 7#e7 ,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 advisory committee4