2000
<PRE>[DOCID: f:h2589pcs.txt]
                                                       Calendar No. 168
107th CONGRESS
  1st Session
                                H. R. 2589


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2001

            Received; read twice and placed on the calendar

_______________________________________________________________________

                                 AN ACT


 
To amend the Multifamily Assisted Housing Reform and Affordability Act 
  of 1997 to reauthorize the Office of Multifamily Housing Assistance 
                 Restructuring, 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 AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Mark-to-Market 
Extension Act of 2001''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Purposes.
Sec. 3. Effective date.
TITLE I--MULTIFAMILY HOUSING MORTGAGE AND ASSISTANCE RESTRUCTURING AND 
                       SECTION 8 CONTRACT RENEWAL

Sec. 101. Definitions.
Sec. 102. Mark-to-market program amendments.
Sec. 103. Consistency of rent levels under enhanced voucher assistance 
                            and rent restructurings.
Sec. 104. Eligible inclusions for renewal rents of partially assisted 
                            buildings.
Sec. 105. Eligibility of restructuring projects for miscellaneous 
                            housing insurance.
Sec. 106. Technical corrections.
    TITLE II--OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING

Sec. 201. Reauthorization of Office and extension of program.
Sec. 202. Appointment of Director.
Sec. 203. Vacancy in position of Director.
Sec. 204. Oversight by Federal Housing Commissioner.
Sec. 205. Limitation on subsequent employment.
          TITLE III--MISCELLANEOUS HOUSING PROGRAM AMENDMENTS

Sec. 301. Extension of CDBG public services cap exception.
Sec. 302. Use of section 8 enhanced vouchers for prepayments.
Sec. 303. Prepayment and refinancing of loans for section 202 
                            supportive housing.
Sec. 304. Technical correction.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to continue the progress of the Multifamily Assisted 
        Housing Reform and Affordability Act of 1997 (referred to in 
        this section as ``that Act'');
            (2) to ensure that properties that undergo mortgage 
        restructurings pursuant to that Act are rehabilitated to a 
        standard that allows the properties to meet their long-term 
        affordability requirements;
            (3) to ensure that, for properties that undergo mortgage 
        restructurings pursuant to that Act, reserves are set at 
        adequate levels to allow the properties to meet their long-term 
        affordability requirements;
            (4) to ensure that properties that undergo mortgage 
        restructurings pursuant to that Act are operated efficiently, 
        and that operating expenses are sufficient to ensure the long-
        term financial and physical integrity of the properties;
            (5) to ensure that properties that undergo rent 
        restructurings have adequate resources to maintain the 
        properties in good condition;
            (6) to ensure that the Office of Multifamily Housing 
        Assistance Restructuring of the Department of Housing and Urban 
        Development continues to focus on the portfolio of properties 
        eligible for restructuring under that Act;
            (7) to ensure that the Department of Housing and Urban 
        Development carefully tracks the condition of those properties 
        on an ongoing basis;
            (8) to ensure that tenant groups, nonprofit organizations, 
        and public entities continue to have the resources for building 
        the capacity of tenant organizations in furtherance of the 
        purposes of subtitle A of that Act; and
            (9) to encourage the Office of Multifamily Housing 
        Assistance Restructuring to continue to provide participating 
        administrative entities, including public participating 
        administrative entities, with the flexibility to respond to 
        specific problems that individual cases may present, while 
        ensuring consistent outcomes around the country.

SEC. 3. EFFECTIVE DATE.

    Except as provided in sections 106(a)(2), 303(b), and 304(b), this 
Act and the amendments made by this Act shall take effect or are deemed 
to have taken effect, as appropriate, on the earlier of--
            (1) the date of the enactment of this Act; or
            (2) September 30, 2001.

TITLE I--MULTIFAMILY HOUSING MORTGAGE AND ASSISTANCE RESTRUCTURING AND 
                       SECTION 8 CONTRACT RENEWAL

SEC. 101. DEFINITIONS.

    Section 512 of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding 
at the end the following new paragraph:
            ``(19) Office.--The term `Office' means the Office of 
        Multifamily Housing Assistance Restructuring established under 
        section 571.''.

SEC. 102. MARK-TO-MARKET PROGRAM AMENDMENTS.

    (a) Funding for Tenant and Nonprofit Participation.--Section 
514(f)(3)(A) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended--
            (1) by striking ``Secretary may provide not more than 
        $10,000,000 annually in funding'' and inserting ``Secretary 
        shall make available not more than $10,000,000 annually in 
        funding, which amount shall be in addition to any amounts made 
        available under this subparagraph and carried over from 
        previous years,''; and
            (2) by striking ``entities) and for tenant services,'' and 
        inserting ``entities), for tenant services, and for tenant 
        groups, nonprofit organizations, and public entities described 
        in section 517(a)(5),''.
    (b) Exception Rents.--Section 514(g)(2)(A) of the Multifamily 
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
note) is amended by striking ``restructured mortgages in any fiscal 
year'' and inserting ``portfolio restructuring agreements''.
    (c) Notice to Displaced Tenants.--Section 516(d) of the Multifamily 
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
note) is amended by striking ``Subject to'' and inserting the 
following:
            ``(1) Notice to certain residents.--The Office shall notify 
        any tenant that is residing in a project or receiving 
        assistance under section 8 of the United States Housing Act of 
        1937 (42 U.S.C. 1437f) at the time of rejection under this 
        section, of such rejection, except that the Office may delegate 
        the responsibility to provide notice under this paragraph to 
        the participating administrative entity.
            ``(2) Assistance and moving expenses.--Subject to''.
    (d) Restructuring Plans for Transfers of Prepayment Projects.--The 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note) is amended--
            (1) in section 524(e), by adding at the end the following 
        new paragraph:
            ``(3) Mortgage restructuring and rental assistance 
        sufficiency plans.--Notwithstanding paragraph (1), the owner of 
        the project may request, and the Secretary may consider, 
        mortgage restructuring and rental assistance sufficiency plans 
        to facilitate sales or transfers of properties under this 
        subtitle, subject to an approved plan of action under the 
        Emergency Low Income Housing Preservation Act of 1987 (12 
        U.S.C. 1715l note) or the Low-Income Housing Preservation and 
        Resident Homeownership Act of 1990 (12 U.S.C. 4101 et seq.), 
        which plans sha
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ll result in a sale or transfer of those 
        properties.''; and
            (2) in the last sentence of section 512(2), by inserting 
        ``, but does include a project described in section 524(e)(3)'' 
        after ``section 524(e)''.
    (e) Addition of Significant Features.--Section 517 of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note) is amended--
            (1) by striking subsection (c) (except that the striking of 
        such subsection may not be construed to have any effect on the 
        provisions of law amended by such subsection, as such 
        subsection was in effect before the date of the enactment of 
        this Act);
            (2) in subsection (b)--
                    (A) in paragraph (7), by striking ``(7)'' and 
                inserting ``(1)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) Addition of Significant Features.--
                    ``(A) Authority.--An approved mortgage 
                restructuring and rental assistance sufficiency plan 
                may require the improvement of the project by the 
                addition of significant features that are not necessary 
                for rehabilitation to the standard provided under 
                paragraph (1), such as air conditioning, an elevator, 
                and additional community space. The Secretary shall 
                establish guidelines regarding the inclusion of 
                requirements regarding such additional significant 
                features under such plans.
                    ``(B) Funding.--Significant features added pursuant 
                to an approved mortgage restructuring and rental 
                assistance sufficiency plan may be paid from the 
                funding sources specified in the first sentence of 
                paragraph (1)(A).
                    ``(C) Limitation on owner contribution.--An owner 
                of a project may not be required to contribute from 
                non-project resources, toward the cost of any 
                additional significant features required pursuant to 
                this paragraph, more than 25 percent of the amount of 
                any assistance received for the inclusion of such 
                features.
                    ``(D) Applicability.--This paragraph shall apply to 
                all eligible multifamily housing projects, except 
                projects for which the Secretary and the project owner 
                executed a mortgage restructuring and rental assistance 
                sufficiency plan on or before the date of the enactment 
                of the Mark-to-Market Extension Act of 2001.''; and
            (3) by inserting after paragraph (6) of subsection (b) the 
        following:
    ``(c) Rehabilitation Needs and Addition of Significant Features.--
''.
    (f) Look-Back Projects.--Section 512(2) of the Multifamily Assisted 
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is 
amended by adding after the period at the end of the last sentence the 
following: ``Notwithstanding any other provision of this title, the 
Secretary may treat a project as an eligible multifamily housing 
project for purposes of this title if (I) the project is assisted 
pursuant to a contract for project-based assistance under section 8 of 
the United States Housing Act of 1937 renewed under section 524 of this 
Act, (II) the owner consents to such treatment, and (III) the project 
met the requirements of the first sentence of this paragraph for 
eligibility as an eligible multifamily housing project before the 
initial renewal of the contract under section 524.''.
    (g) Second Mortgages.--Section 517(a) of the Multifamily Assisted 
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is 
amended--
            (1) in paragraph (1)(B), by striking ``no more than the'' 
        and inserting the following: ``not more than the greater of--
                            ``(i) the full or partial payment of claim 
                        made under this subtitle; or
                            ``(ii) the''; and
            (2) in paragraph (5), by inserting ``of the second 
        mortgage, assign the second mortgage to the acquiring 
        organization or agency,'' after ``terms''.
    (h) Exemptions From Restructuring.--Section 514(h)(2) of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note) is amended by inserting before the semicolon the 
following: ``, or refinanced pursuant to section 811 of the American 
Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 1701q 
note)''.

SEC. 103. CONSISTENCY OF RENT LEVELS UNDER ENHANCED VOUCHER ASSISTANCE 
              AND RENT RESTRUCTURINGS.

    Subtitle A of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding 
at the end the following new section:

``SEC. 525. CONSISTENCY OF RENT LEVELS UNDER ENHANCED VOUCHER 
              ASSISTANCE AND RENT RESTRUCTURINGS.

    ``(a) In General.--The Secretary shall examine the standards and 
procedures for determining and establishing the rent standards 
described under subsection (b). Pursuant to such examination, the 
Secretary shall establish procedures and guidelines that are designed 
to ensure that the amounts determined by the various rent standards for 
the same dwelling units are reasonably consistent and reflect rents for 
comparable unassisted units in the same area as such dwelling units.
    ``(b) Rent Standards.--The rent standards described in this 
subsection are as follows:
            ``(1) Enhanced vouchers.--The payment standard for enhanced 
        voucher assistance under section 8(t) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(t)).
            ``(2) Mark-to-market.--The rents derived from comparable 
        properties, for purposes of section 514(g) of the Multifamily 
        Assisted Housing Reform and Affordability Act of 1997 (42 
        U.S.C. 1437f note).
            ``(3) Contract renewal.--The comparable market rents for 
        the market area, for purposes of section 524(a)(4) of the 
        Multifamily Assisted Housing Reform and Affordability Act of 
        1997 (42 U.S.C. 1437f note).''.

SEC. 104. ELIGIBLE INCLUSIONS FOR RENEWAL RENTS OF PARTIALLY ASSISTED 
              BUILDINGS.

    Section 524(a)(4)(C) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding 
after the period at the end the following: ``Notwithstanding any other 
provision of law, the Secretary shall include in such budget-based cost 
increases costs relating to the project as a whole (including costs 
incurred with respect to units not covered by the contract for 
assistance), but only (I) if inclusion of such costs is requested by 
the owner or purchaser of the project, (II) if inclusion of such costs 
will permit capital repairs to the project or acquisition of the 
project by a nonprofit organization, and (III) to the extent that 
inclusion of such costs (or a portion thereof) complies with the 
requirement under clause (ii).''.

SEC. 105. ELIGIBILITY OF RESTRUCTURING PROJECTS FOR MISCELLANEOUS 
              HOUSING INSURANCE.

    Section 223(a)(7) of the National Housing Act (12 U.S.C. 
1715n(a)(7)) is amended--
            (1) by striking ``under this Act: Provided, That the 
        principal'' and inserting the following: ``under this Act, or 
        an existing mortgage held by the Secretary that is subject to a 
        mortgage restructuring and rental assistance sufficiency plan 
        pursuant to the Multifamily Assisted Housing Reform and 
        Affordability Act of 1997 (42 U.S.C. 1437f note), provided 
        that--
                    ``(A) the principal'';
            (2) by striking ``except that (A)'' and inserting ``except 
        that (i)'';
            (3) by striking ``(B)'' and inserting ``(ii)'';
            (4) by strikin
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g ``(C)'' and inserting ``(iii)'';
            (5) by striking ``(D)'' and inserting ``(iv)'';
            (6) by striking ``: Provided further, That a mortgage'' and 
        inserting the following ``; and
                    ``(B) a mortgage'';
            (7) by striking ``or'' at the end; and
            (8) by adding at the end the following new subparagraph:
                    ``(C) a mortgage that is subject to a mortgage 
                restructuring and rental assistance sufficiency plan 
                pursuant to the Multifamily Assisted Housing Reform and 
                Affordability Act of 1997 (42 U.S.C. 1437f note) and is 
                refinanced under this paragraph may have a term of not 
                more than 30 years; or''.

SEC. 106. TECHNICAL CORRECTIONS.

    (a) Exemptions From Restructuring.--
            (1) In general.--Section 514(h) of the Multifamily Assisted 
        Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
        note) is amended to read as if the amendment made by section 
        531(c) of Public Law 106-74 (113 Stat. 1116) were made to 
        ``Section 514(h)(1)'' instead of ``Section 514(h)''.
            (2) Retroactive effect.--The amendment made by paragraph 
        (1) of this subsection is deemed to have taken effect on the 
        date of the enactment of Public Law 106-74 (113 Stat. 1109).
    (b) Other.--The Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended--
            (1) in section 511(a)(12), by striking ``this Act'' and 
        inserting ``this title'';
            (2) in section 513, by striking ``this Act'' each place 
        such term appears in subsections (a)(2)(I) and (b)(3) and 
        inserting ``this title'';
            (3) in section 514(f)(3)(B), by inserting ``Housing'' after 
        ``Multifamily'';
            (4) in section 515(c)(1)(B), by inserting ``or'' after the 
        semicolon;
            (5) in section 517(b)--
                    (A) in each of paragraphs (1) through (6), by 
                capitalizing the first letter of the first word that 
                follows the paragraph heading;
                    (B) in each of paragraphs (1) through (5), by 
                striking the semicolon at the end and inserting a 
                period; and
                    (C) in paragraph (6), by striking ``; and'' at the 
                end and inserting a period;
            (6) in section 520(b), by striking ``Banking and''; and
            (7) in section 573(d)(2), by striking ``Banking and''.

    TITLE II--OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING

SEC. 201. REAUTHORIZATION OF OFFICE AND EXTENSION OF PROGRAM.

    Section 579 of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) Repeals.--
            ``(1) Mark-to-market program.--Subtitle A (except for 
        section 524) is repealed effective October 1, 2006.
            ``(2) OMHAR.--Subtitle D (except for this section) is 
        repealed effective October 1, 2004.'';
            (2) in subsection (b), by striking ``October 1, 2001'' and 
        inserting ``October 1, 2006'';
            (3) in subsection (c), by striking ``upon September 30, 
        2001'' and inserting ``at the end of September 30, 2004''; and
            (4) by striking subsection (d) and inserting the following 
        new subsection:
    ``(d) Transfer of Authority.--Effective upon the repeal of subtitle 
D under subsection (a)(2) of this section, all authority and 
responsibilities to administer the program under subtitle A are 
transferred to the Secretary.''.

SEC. 202. APPOINTMENT OF DIRECTOR.

    (a) In General.--Section 572 of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended 
by striking subsection (a) and inserting the following new subsection:
    ``(a) Appointment.--The Office shall be under the management of a 
Director, who shall be appointed by the President from among 
individuals who are citizens of the United States and have a 
demonstrated understanding of financing and mortgage restructuring for 
affordable multifamily housing.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to the first Director of the Office of Multifamily Housing 
Assistance Restructuring of the Department of Housing and Urban 
Development appointed after the date of the enactment of this Act, and 
any such Director appointed thereafter.

SEC. 203. VACANCY IN POSITION OF DIRECTOR.

    (a) In General.--Section 572 of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended 
by striking subsection (b) and inserting the following new subsection:
    ``(b) Vacancy.--A vacancy in the position of Director shall be 
filled by appointment in the manner provided under subsection (a). The 
President shall make such an appointment not later than 60 days after 
such position first becomes vacant.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to any vacancy in the position of Director of the Office of 
Multifamily Housing Assistance Restructuring of the Department of 
Housing and Urban Development which occurs or exists after the date of 
the enactment of this Act.

SEC. 204. OVERSIGHT BY FEDERAL HOUSING COMMISSIONER.

    (a) In General.--Section 578 of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended 
to read as follows:

``SEC. 578. OVERSIGHT BY FEDERAL HOUSING COMMISSIONER.

    ``All authority and responsibilities assigned under this subtitle 
to the Secretary shall be carried out through the Assistant Secretary 
of the Department of Housing and Urban Development who is the Federal 
Housing Commissioner.''.
    (b) Report.--The second sentence of section 573(b) of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note) is amended by striking ``Secretary'' and inserting 
``Assistant Secretary of the Department of Housing and Urban 
Development who is the Federal Housing Commissioner''.

SEC. 205. LIMITATION ON SUBSEQUENT EMPLOYMENT.

    Section 576 of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by striking 
``2-year period'' and inserting ``1-year period''.

          TITLE III--MISCELLANEOUS HOUSING PROGRAM AMENDMENTS

SEC. 301. EXTENSION OF CDBG PUBLIC SERVICES CAP EXCEPTION.

    Section 105(a)(8) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(a)(8)) is amended by striking ``through 2001'' and 
inserting ``through 2003''.

SEC. 302. USE OF SECTION 8 ENHANCED VOUCHERS FOR PREPAYMENTS.

    Section 8(t)(2) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(t)(2) is amended by inserting after ``insurance contract for the 
mortgage for such housing project'' the following: ``(including any 
such mortgage prepayment during fiscal year 1996 or a fiscal year 
thereafter or any insurance contract voluntary termination during 
fiscal year 1996 or a fiscal year thereafter)''.

SEC. 303. PREPAYMENT AND REFINANCING OF LOANS FOR SECTION 202 
              SUPPORTIVE HOUSING.

    (a) In General.--Section 811 of the American Homeownership and 
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended by 
striking subsection (e).
    (b) Effectiveness Upon Date of Enactment.--The amendment made by 
subsection (a) of this section shall take effect upon the date of the 
enactment of this Act and the provisions of section 811 of the American 
Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 1701q 
note), as amended by subsection (a) of this section, shall apply as so 
amended upon such date of enactment, notwithstanding--
            (1) any authority of the Secretary of Housing and Urban 
        Development to issue regulations to implement or carry out the 
        amendments made by subsection (a) of this section or the 
   
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     provisions of section 811 of the American Homeownership and 
        Economic Opportunity Act of 2000 (12 U.S.C. 1701q note); or
            (2) any failure of the Secretary of Housing and Urban 
        Development to issue any such regulations authorized.

SEC. 304. TECHNICAL CORRECTION.

    (a) In General.--Section 101(a) of Public Law 100-77 (42 U.S.C. 
11301 note) is amended to read as if the amendment made by section 1 of 
Public Law 106-400 (114 Stat. 1675) were made to ``Section 101'' 
instead of ``Section 1''.
    (b) Retroactive Effect.--The amendment made by subsection (a) of 
this section is deemed to have taken effect immediately after the 
enactment of Public Law 106-400 (114 Stat. 1675).

            Passed the House of Representatives September 24, 2001.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.




                                                       Calendar No. 168

107th CONGRESS

  1st Session

                               H. R. 2589

_______________________________________________________________________

                                 AN ACT

To amend the Multifamily Assisted Housing Reform and Affordability Act 
  of 1997 to reauthorize the Office of Multifamily Housing Assistance 
                 Restructuring, and for other purposes.

_______________________________________________________________________

                           September 25, 2001

            Received; read twice and placed on the calendar

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