[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2482 Referred in Senate (RFS)]
114th CONGRESS
1st Session
H. R. 2482
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 15, 2015
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To amend the Low-Income Housing Preservation and Resident Homeownership
Act of 1990.
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 ``Preservation Enhancement and Savings
Opportunity Act of 2015''.
SEC. 2. DISTRIBUTIONS AND RESIDUAL RECEIPTS.
Section 222 of the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4112) is amended by adding at the
end the following new subsection:
``(e) Distribution and Residual Receipts.--
``(1) Authority.--After the date of the enactment of the
Preservation Enhancement and Savings Opportunity Act of 2015,
the owner of a property subject to a plan of action or use
agreement pursuant to this section shall be entitled to
distribute--
``(A) annually, all surplus cash generated by the
property, but only if the owner is in material
compliance with such use agreement including compliance
with prevailing physical condition standards
established by the Secretary; and
``(B) notwithstanding any conflicting provision in
such use agreement, any funds accumulated in a residual
receipts account, but only if the owner is in material
compliance with such use agreement and has completed,
or set aside sufficient funds for completion of, any
capital repairs identified by the most recent third
party capital needs assessment.
``(2) Operation of property.--An owner that distributes any
amounts pursuant to paragraph (1) shall--
``(A) 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 property;
``(B) as required by the plan of action for the
property, continue to renew or extend any project-based
rental assistance contract for a term of not less than
20 years; and
``(C) if the owner has an existing multi-year
project-based rental assistance contract for less than
20 years, have the option to extend the contract to a
20-year term.''.
SEC. 3. FUTURE REFINANCINGS.
Section 214 of the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4104) is amended by adding at the
end the following new subsection:
``(c) Future Financing.--Neither this section, nor any plan of
action or use agreement implementing this section, shall restrict an
owner from obtaining a new loan or refinancing an existing loan secured
by the project, or from distributing the proceeds of such a loan;
except that, in conjunction with such refinancing--
``(1) 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 agency;
``(2) any resulting budget-based rent increase shall
include debt service on the new financing, commercially
reasonable debt service coverage, and replacement reserves as
required by the lender; and
``(3) for tenants of dwelling units not covered by a
project- or tenant-based rental subsidy, any rent increases
resulting from the refinancing transaction may not exceed 10
percent per year, except that--
``(A) any tenant occupying a dwelling unit as of
time of the refinancing may not be required to pay for
rent and utilities, for the duration of such tenancy,
an amount that exceeds the greater of--
``(i) 30 percent of the tenant's income; or
``(ii) the amount paid by the tenant for
rent and utilities immediately before such
refinancing; and
``(B) this paragraph shall not apply to any tenant
who does not provide the owner with proof of income.
Paragraph (3) may not be construed to limit any rent increases
resulting from increased operating costs for a project.''.
SEC. 4. IMPLEMENTATION.
The Secretary of Housing and Urban Development shall issue any
guidance that the Secretary considers necessary to carry out the
provisions added by the amendments made by sections 2 and 3 not later
than the expiration of the 120-day period beginning on the date of the
enactment of this Act.
Passed the House of Representatives July 14, 2015.
Attest:
KAREN L. HAAS,
Clerk.