[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3620 Engrossed in House (EH)]
<DOC>
116th CONGRESS
1st Session
H. R. 3620
_______________________________________________________________________
AN ACT
To provide rental assistance to low-income tenants in certain
multifamily rural housing projects financed by the Rural Housing
Service of the Department of Agriculture, and to develop and implement
a plan for preserving the affordability of rural rental housing, and
for other purposes.
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 ``Strategy and Investment in Rural
Housing Preservation Act of 2019''.
SEC. 2. PERMANENT ESTABLISHMENT OF HOUSING PRESERVATION AND
REVITALIZATION PROGRAM.
Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is
amended by adding at the end the following new section:
``SEC. 545. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.
``(a) Establishment.--The Secretary shall carry out a program under
this section for the preservation and revitalization of multifamily
rental housing projects financed under section 515 or both sections 514
and 516.
``(b) Notice of Maturing Loans.--
``(1) To owners.--On an annual basis, the Secretary shall
provide written notice to each owner of a property financed
under section 515 or both sections 514 and 516 that will mature
within the 4-year period beginning upon the provision of such
notice, 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 (f).
``(2) To tenants.--
``(A) In general.--For each property financed under
section 515 or both sections 514 and 516, not later
than the date that is 2 years before the date that such
loan will mature, the Secretary shall provide written
notice to each household residing in such property that
informs them of the date of the loan maturity, the
possible actions that may happen with respect to the
property upon such maturity, and how to protect their
right to reside in federally assisted housing after
such maturity.
``(B) 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 languages.
``(c) Loan Restructuring.--Under the program under this section,
the Secretary may restructure such existing housing loans, as the
Secretary considers appropriate, for the purpose of ensuring that such
projects have sufficient resources to preserve the projects to provide
safe and affordable housing for low-income residents and farm laborers,
by--
``(1) reducing or eliminating interest;
``(2) deferring loan payments;
``(3) subordinating, reducing, or reamortizing loan debt;
and
``(4) providing other financial assistance, including
advances, payments, and incentives (including the ability of
owners to obtain reasonable returns on investment) required by
the Secretary.
``(d) Renewal of Rental Assistance.--When the Secretary offers to
restructure a loan pursuant to subsection (c), the Secretary shall
offer to renew the rental assistance contract under section 521(a)(2)
for a 20-year term that is subject to annual appropriations, provided
that the owner agrees to bring the property up to such standards that
will ensure its maintenance as decent, safe, and sanitary housing for
the full term of the rental assistance contract.
``(e) Restrictive Use Agreements.--
``(1) Requirement.--As part of the preservation and
revitalization agreement for a project, the Secretary shall
obtain a restrictive use agreement that obligates the owner to
operate the project in accordance with this title.
``(2) Term.--
``(A) No extension of rental assistance contract.--
Except when the Secretary enters into a 20-year
extension of the rental assistance contract for the
project, the term of the restrictive use agreement for
the project shall be consistent with the term of the
restructured loan for the project.
``(B) Extension of rental assistance contract.--If
the Secretary enters into a 20-year extension of the
rental assistance contract for a project, the term of
the restrictive use agreement for the project shall be
for 20 years.
``(C) Termination.--The Secretary may terminate the
20-year use restrictive use agreement for a project
prior to the end of its term if the 20-year rental
assistance contract for the project with the owner is
terminated at any time for reasons outside the owner's
control.
``(f) Decoupling of Rental Assistance.--
``(1) Renewal of rental assistance contract.--If the
Secretary determines that a maturing loan for a project cannot
reasonably be restructured in accordance with subsection (c)
and the project was operating with rental assistance under
section 521, the Secretary may renew the rental assistance
contract, notwithstanding any provision of section 521, for a
term, subject to annual appropriations, of at least 10 years
but not more than 20 years.
``(2) Rents.--Any agreement to extend the term of the
rental assistance contract under section 521 for a project
shall obligate the owner to continue to maintain the project as
decent, safe and sanitary housing and to operate the
development in accordance with this title, except that rents
shall be based on the lesser of--
``(A) the budget-based needs of the project; or
``(B) (ii) the operating cost adjustment factor as
a payment standard as provided under section 524 of the
Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437 note).
``(g) Multifamily Housing Transfer Technical Assistance.--Under the
program under this section, the Secretary may provide grants to
qualified non-profit organizations and public housing agencies to
provide technical assistance, including financial and legal services,
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 housing.
``(h) Transfer of Rental Assistance.--After the loan or loans for a
rental project originally financed under section 515 or both sections
514 and 516 have matured or have been prepaid and the owner has chosen
not to restructure the loan pursuant to subsection (c), a tenant
residing in such project shall have 18 months prior to loan maturation
or prepayment to transfer the rental assistance assigned to the
tenant's unit to another rental project originally financed under
section 515 or both sections 514 and 516, and the owner of the initial
project may rent the tenant's previous unit to a new tenant without
income restrictions.
``(i) Administrative Expenses.--Of any amounts made available for
the program under this section for any fiscal year, the Secretary may
use not more than $1,000,000 for administrative expenses for carrying
out such program.
``(j) Authorization of Appropriations.--There is authorized to be
appropriated for the program under this section $200,000,000 for each
of fiscal years 2020 through 2024.''.
SEC. 3. ELIGIBILITY FOR RURAL HOUSING VOUCHERS.
Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is amended
by adding at the end the following new subsection:
``(c) Eligibility of Households in Section 514, 515, and 516
Projects.--The Secretary may provide rural housing vouchers under this
section for any low-income household (including those not receiving
rental assistance) residing in a property financed with a loan made or
insured under section 514 or 515 (42 U.S.C. 1484, 1485) which has been
prepaid, has been foreclosed, or has matured after September 30, 2005,
or residing in a property assisted under section 514 or 516 that is
owned by a nonprofit organization or public agency.''.
SEC. 4. AMOUNT OF VOUCHER ASSISTANCE.
Notwithstanding any other provision of law, in the case of any
rural housing voucher provided pursuant to section 542 of the Housing
Act of 1949 (42 U.S.C. 1490r), the amount of the monthly assistance
payment for the household on whose behalf such assistance is provided
shall be determined as provided in subsection (a) of such section 542.
SEC. 5. USE OF AVAILABLE RENTAL ASSISTANCE.
Subsection (d) of section 521 of the Housing Act of 1949 (42 U.S.C.
1490a(d)) is amended by adding at the end the following new paragraph:
``(3) In the case of any rental assistance contract authority that
becomes available because of the termination of assistance on behalf of
an assisted family--
``(A) at the option of the owner of the rental project, the
Secretary shall provide the owner a period of 6 months before
such assistance is made available pursuant to subparagraph (B)
during which the owner may use such assistance authority to
provide assistance of behalf of an eligible unassisted family
that--
``(i) is residing in the same rental project that
the assisted family resided in prior to such
termination; or
``(ii) newly occupies a dwelling unit in such
rental project during such period; and
``(B) except for assistance used as provided in
subparagraph (A), the Secretary shall use such remaining
authority to provide such assistance on behalf of eligible
families residing in other rental projects originally financed
under section 515 or both sections 514 and 516 of this Act.''.
SEC. 6. FUNDING FOR MULTIFAMILY TECHNICAL IMPROVEMENTS.
There is authorized to be appropriated to the Secretary of
Agriculture $50,000,000 for fiscal year 2020 for improving the
technology of the Department of Agriculture used to process loans for
multifamily housing and otherwise managing such housing. Such
improvements shall be made within the 5-year period beginning upon the
appropriation of such amounts and such amount shall remain available
until the expiration of such 5-year period.
SEC. 7. PLAN FOR PRESERVING AFFORDABILITY OF RENTAL PROJECTS.
(a) Plan.--The Secretary of Agriculture (in this section referred
to as the ``Secretary'') shall submit a written plan to the Congress,
not later than the expiration of the 6-month period beginning on the
date of the enactment of this Act, for preserving the affordability for
low-income families of rental projects for which loans were made under
section 515 or made to nonprofit or public agencies under section 514
and avoiding the displacement of tenant households, which shall--
(1) set forth specific performance goals and measures;
(2) set forth the specific actions and mechanisms by which
such goals will be achieved;
(3) set forth specific measurements by which progress
towards achievement of each goal can be measured;
(4) provide for detailed reporting on outcomes; and
(5) include any legislative recommendations to assist in
achievement of the goals under the plan.
(b) Advisory Committee.--
(1) Establishment; purpose.--The Secretary shall establish
an advisory committee whose purpose shall be to assist the
Secretary in preserving section 515 properties and section 514
properties owned by nonprofit or public agencies through the
multifamily housing preservation and revitalization program
under section 545 and in implementing the plan required under
subsection (a).
(2) Member.--The advisory committee shall consist of 14
members, appointed by the Secretary, as follows:
(A) A State Director of Rural Development for the
Department of Agriculture.
(B) The Administrator for Rural Housing Service of
the Department of Agriculture.
(C) Two representatives of for-profit developers or
owners of multifamily rural rental housing.
(D) Two representatives of non-profit developers or
owners of multifamily rural rental housing.
(E) Two representatives of State housing finance
agencies.
(F) Two representatives of tenants of multifamily
rural rental housing.
(G) One representative of a community development
financial institution that is involved in preserving
the affordability of housing assisted under sections
514, 515, and 516 of the Housing Act of 1949.
(H) 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 regarding, and
providing financing and technical assistance for,
preserving the affordability of such housing.
(I) One representative of low-income housing tax
credit investors.
(J) One representative of regulated financial
institutions that finance affordable multifamily rural
rental housing developments.
(3) Meetings.--The advisory committee shall meet not less
often than once each calendar quarter.
(4) Functions.--In providing assistance to the Secretary to
carry out its purpose, the advisory committee shall carry out
the following functions:
(A) Assisting the Rural Housing Service of the
Department of Agriculture to improve estimates of the
size, scope, and condition of rental housing portfolio
of the Service, including the time frames for maturity
of mortgages and costs for preserving the portfolio as
affordable housing.
(B) Reviewing current policies and procedures of
the Rural Housing Service regarding preservation of
affordable rental housing financed under sections 514,
515, 516, and 538 of the Housing Act of 1949, the
Multifamily Preservation and Revitalization
Demonstration program (MPR), and the rental assistance
program and making recommendations regarding
improvements and modifications to such policies and
procedures.
(C) Providing ongoing review of Rural Housing
Service program results.
(D) Providing reports to the Congress and the
public on meetings, recommendations, and other findings
of the advisory committee.
(5) 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 committee.
SEC. 8. COVERED HOUSING PROGRAMS.
Paragraph (3) of section 41411(a) of the Violence Against Women Act
of 1994 (34 U.S.C. 12491(a)(3)) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) by redesignating subparagraph (J) as subparagraph (K);
and
(3) by inserting after subparagraph (I) the following new
subparagraph:
``(J) rural development housing voucher assistance
provided by the Secretary of Agriculture pursuant to
section 542 of the Housing Act of 1949 (42 U.S.C.
1490r), without regard to subsection (b) of such
section, and applicable appropriation Acts; and''.
Passed the House of Representatives September 10, 2019.
Attest:
Clerk.
116th CONGRESS
1st Session
H. R. 3620
_______________________________________________________________________
AN ACT
To provide rental assistance to low-income tenants in certain
multifamily rural housing projects financed by the Rural Housing
Service of the Department of Agriculture, and to develop and implement
a plan for preserving the affordability of rural rental housing, and
for other purposes.