,,ii #aahth ,,congress #b;d ,session ,s4 #cica ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ab1 #bjbd,mr4 ,brown introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to preserve and protect multifamily housing properties assisted by the ,secretary of ,housing and ,urban ,development4 #a4 ,short title ,this ,act may be cited as the ,affordable ,housing ,preservation and ,protection ,act of #bjbd4 #b4 ,revitalization and preservation of distressed multifamily properties 7a7 ,definitions ,as used in this section-- 7#a7 the term multifamily housing project means a project consisting of five or more dwelling units assisted or approved to receive a transfer of assistance1 insured1 or with a loan held by the ,secretary or a ,state or ,state agency in part or in whole pursuant to-- 7,a7 section #h7;b7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7b772 7,b7 section #bjb of the ,housing ,act of #aiei 7#ab ,u4,s4,c4 #agjaq72 7,c7 section #bjb of the ,housing ,act of #aiei 7former #ab ,u4,s4,c4 #agjaq71 as such section existed before the enactment of the ,cranston-,gonzalez ,national ,affordable ,housing ,act 7,public ,law #aja-fbe2 #ajd ,stat4 #djgi72 7,d7 section #haa of the ,cranston-,gonzalez ,national ,affordable ,housing ,act 7#db ,u4,s4,c4 #hjac72 7,e7 section #bcf of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agaez-#a72 7,f7 a housing assistance payments contract for project-based rental assistance2 or 7,g7 a ,second ,component contract for project-based rental assistance converted in accordance with the matter under the heading rental assistance demonstration under the heading management and administration under the heading ,department of ,housing and ,urban ,development in title ,,ii of division ,c of the ,consolidated and ,continuing ,appropriations ,act1 #bjab 7#db ,u4,s4,c4 #adcg;f note2 ,public ,law #aab-ee72 and 7#b7 the term necessary physical improvements means new construction or capital improvements to an existing multifamily housing project that the ,secretary determines are necessary to address the deficiencies or that rise to such a level that delaying physical improvements to the project would be detrimental to the longevity of the project as suitable housing for occupancy4 7b7 ,authority ,to such extent or in such amounts as provided in appropriations ,acts1 the ,secretary of ,housing and ,urban ,development 7in this section referred to as the ,secretary7 may offer capital assistance under this section to owners or sponsors of eligible multifamily housing projects for the purpose of ensuring the long-term preservation of safe1 affordable housing4 7c7 ,eligible costs ,the ,secretary may use funds under this section for-- 7#a7 the cost of providing direct loans1 which may be forgivable1 and the costs of modifying such loans1 to owners or sponsors of distressed multifamily housing projects for the purpose of making necessary physical improvements1 including to subsidize gross obligations for the principal amount of such loans1 subject to the terms and conditions in subsection 7d71 to fund projects that improve physical conditions2 and 7#b7 administering the implementation of this section1 including-- 7,a7 the cost of contracts or cooperative agreements to support implementation2 and 7,b7 costs related to outreach and consultation with residents of distressed multifamily housing projects and other community stakeholders4 7d7 ,loan terms and conditions 7#a7 ,eligibility ,owners or sponsors of multifamily housing projects who meet each of the following requirements shall be eligible for loan assistance under this section3 7,a7 ,the multifamily housing project1 including any project from which assistance has been approved to be transferred has deficiencies that cause the project to be at risk of physical obsolescence or economic nonviability4 7,b7 ,the actual rents received by the owner or sponsor of the distressed property would not adequately sustain the debt needed to make necessary physical improvements4 7,c7 ,the owner or sponsor meets any such additional eligibility criteria as the ,secretary determines to be appropriate1 considering factors that contributed to the project's deficiencies4 7,d7 ,the owner or sponsor agrees to extend or establish an affordable housing use agreement for #cj years and agrees to accept a renewal of a housing assistance payments contract in any year in which a renewal is offered by the ,secretary4 7#b7 ,use of loan funds ,each recipient of loan assistance under this section may only use such loan assistance for eligible uses1 as determined by the ,secretary1 to result in necessary physical improvements4 7#c7 ,loan availability ,the ,secretary shall only provide loan assistance to an owner or sponsor of a multifamily housing project when such assistance1 considered with other financial resources available to the owner or sponsor1 is needed to make the necessary physical improvements4 7#d7 ,interest rates and length ,loans provided under this section shall bear interest at #a percent1 and at origination shall have a repayment period coterminous with the affordability period described in paragraph 7#a77;,d71 with the frequency and amount of repayments to be determined by requirements established by the ,secretary4 7#e7 ,loan modifications or forgiveness ,with respect to loans provided under this section1 the ,secretary may take any of the following actions if the ,secretary determines that doing so will preserve affordability of the project3 7,a7 ,waive any due on sale or due on refinancing restriction4 7,b7 ,consent to the terms of new debt to which the loans may be subordinate1 even if such new debt would impact the repayment of the loan4 7,c7 ,extend the term of the loan4 7,d7 ,forgive the loan in whole or in part4 7#f7 ,matching contribution ,each recipient of loan assistance under this section shall secure at least #bj percent of the total cost needed to make the necessary physical improvements from non-,federal sources1 except in cases where the ,secretary determines that a lack of financial resources qualifies a loan recipient for-- 7,a7 a reduced contribution below #bj percent2 or 7,b7 an exemption to the matching contribution requirement4 7#g7 ,additional loan conditions ,the ,secretary may establish additional conditions for loan eligibility provided under this section as the ,secretary determines to be appropriate4 7#h7 ,multifamily housing projects insured by the ,secretary ,in the case of any property with respect to which assistance is provided under this section that has a mortgage insured by the ,secretary1 the ,secretary may use funds available under this section as necessary to pay for the costs of modifying such loan4 7e7 ,implementation 7#a7 ,in general ,the ,secretary shall take steps to ensure the effective implementation of this section1 including ensuring-- 7,a7 timely execution of rehabilitation activities funded by assistance under this section2 7,b7 ongoing owner compliance with contract or program requirements2 and 7,c7 outreach to and consultation with residents of distressed properties4 7#b7 ,requirements ,the ,secretary shall have the authority to establish by notice any requirements that the ,secretary determines are necessary for timely and effective implementation of the program and expenditure of funds appropriated1 which requirements shall take effect upon issuance4 7f7 ,authorization of appropriations ,there are authorized to be appropriated to the ,secretary to carry out this section-- 7#a7 for fiscal year #bjbe1 #be1jjj1jjj2 and 7#b7 for each fiscal year thereafter1 such sums as may be necessary4