[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3931 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 3931
To preserve and protect multifamily housing properties assisted by the
Secretary of Housing and Urban Development.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 12, 2024
Mr. Brown introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To preserve and protect multifamily housing properties assisted by the
Secretary of Housing and Urban Development.
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 ``Affordable Housing Preservation and
Protection Act of 2024''.
SEC. 2. REVITALIZATION AND PRESERVATION OF DISTRESSED MULTIFAMILY
PROPERTIES.
(a) Definitions.--As used in this section--
(1) the term ``multifamily housing project'' means a
project consisting of five or more dwelling units assisted or
approved to receive a transfer of assistance, insured, or with
a loan held by the Secretary or a State or State agency in part
or in whole pursuant to--
(A) section 8(b) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(b));
(B) section 202 of the Housing Act of 1959 (12
U.S.C. 1701q);
(C) section 202 of the Housing Act of 1959 (former
12 U.S.C. 1701q), as such section existed before the
enactment of the Cranston-Gonzalez National Affordable
Housing Act (Public Law 101-625; 104 Stat. 4079);
(D) section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013);
(E) section 236 of the National Housing Act (12
U.S.C. 1715z-1);
(F) a housing assistance payments contract for
project-based rental assistance; or
(G) 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
Act, 2012 (42 U.S.C. 1437f note; Public Law 112-55);
and
(2) 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 occupancy.
(b) Authority.--To such extent or in such amounts as provided in
appropriations Acts, the Secretary of Housing and Urban Development (in
this section referred to as the ``Secretary'') 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 safe, affordable housing.
(c) Eligible Costs.--The Secretary may use funds under this section
for--
(1) the cost of providing direct loans, which may be
forgivable, and the costs of modifying such loans, to owners or
sponsors of distressed multifamily housing projects for the
purpose of making necessary physical improvements, including to
subsidize gross obligations for the principal amount of such
loans, subject to the terms and conditions in subsection (d),
to fund projects that improve physical conditions; and
(2) administering the implementation of this section,
including--
(A) the cost of contracts or cooperative agreements
to support implementation; and
(B) costs related to outreach and consultation with
residents of distressed multifamily housing projects
and other community stakeholders.
(d) Loan Terms and Conditions.--
(1) Eligibility.--Owners or sponsors of multifamily housing
projects who meet each of the following requirements shall be
eligible for loan assistance under this section:
(A) The multifamily housing project, 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
nonviability.
(B) The actual rents received by the owner or
sponsor of the distressed property would not adequately
sustain the debt needed to make necessary physical
improvements.
(C) The owner or sponsor meets any such additional
eligibility criteria as the Secretary determines to be
appropriate, considering factors that contributed to
the project's deficiencies.
(D) The owner or sponsor agrees to extend or
establish an affordable housing use agreement for 30
years and agrees to accept a renewal of a housing
assistance payments contract in any year in which a
renewal is offered by the Secretary.
(2) Use of loan funds.--Each recipient of loan assistance
under this section may only use such loan assistance for
eligible uses, as determined by the Secretary, to result in
necessary physical improvements.
(3) Loan availability.--The Secretary shall only provide
loan assistance to an owner or sponsor of a multifamily housing
project when such assistance, considered with other financial
resources available to the owner or sponsor, is needed to make
the necessary physical improvements.
(4) Interest rates and length.--Loans provided under this
section shall bear interest at 1 percent, and at origination
shall have a repayment period coterminous with the
affordability period described in paragraph (1)(D), with the
frequency and amount of repayments to be determined by
requirements established by the Secretary.
(5) Loan modifications or forgiveness.--With respect to
loans provided under this section, the Secretary may take any
of the following actions if the Secretary determines that doing
so will preserve affordability of the project:
(A) Waive any due on sale or due on refinancing
restriction.
(B) Consent to the terms of new debt to which the
loans may be subordinate, even if such new debt would
impact the repayment of the loan.
(C) Extend the term of the loan.
(D) Forgive the loan in whole or in part.
(6) Matching contribution.--Each recipient of loan
assistance under this section shall secure at least 20 percent
of the total cost needed to make the necessary physical
improvements from non-Federal sources, except in cases where
the Secretary determines that a lack of financial resources
qualifies a loan recipient for--
(A) a reduced contribution below 20 percent; or
(B) an exemption to the matching contribution
requirement.
(7) Additional loan conditions.--The Secretary may
establish additional conditions for loan eligibility provided
under this section as the Secretary determines to be
appropriate.
(8) 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 Secretary, the Secretary may use funds available
under this section as necessary to pay for the costs of
modifying such loan.
(e) Implementation.--
(1) In general.--The Secretary shall take steps to ensure
the effective implementation of this section, including
ensuring--
(A) timely execution of rehabilitation activities
funded by assistance under this section;
(B) ongoing owner compliance with contract or
program requirements; and
(C) outreach to and consultation with residents of
distressed properties.
(2) 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
appropriated, which requirements shall take effect upon
issuance.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
(1) for fiscal year 2025, $25,000,000; and
(2) for each fiscal year thereafter, such sums as may be
necessary.
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