Title II — Department of Housing and Urban Development
II Department of Housing and Urban Development
Sec. 202
Sec. 203
Sec. 204
“(u)
“(1) Funds of the Department of Housing and Urban Development subject to the Government Corporation Control Act or section 402 of the Housing Act of 1950 shall be available, without regard to the limitations on administrative expenses, for legal services on a contract or fee basis, and for utilizing and making payment for services and facilities of the Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Financing Bank, Federal Reserve banks or any member thereof, Federal Home Loan banks, and any insured bank within the meaning of the Federal Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811–1).
“(2) Corporations and agencies of the Department of Housing and Urban Development which are subject to the Government Corporation Control Act are hereby authorized to make such expenditures, within the limits of funds and borrowing authority available to each such corporation or agency and in accordance with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of such Act as may be necessary in carrying out the programs set forth in the budget for such corporation or agency except as hereinafter provided: Provided, That collections of these corporations and agencies may be used for new loan or mortgage purchase commitments only to the extent expressly provided for in an appropriations Act (unless such loans are in support of other forms of assistance provided for in appropriations Acts), except that this proviso shall not apply to the mortgage insurance or guaranty operations of these corporations, or where loans or mortgage purchases are necessary to protect the financial interest of the United States Government.”
Sec. 205
Sec. 206
Sec. 207
Sec. 208
“(l) Authority to transfer project-Based assistance and debt
“(1) In general—Notwithstanding any other provision of law, subject to the conditions listed under this section, the Secretary may authorize the transfer of some or all project-based assistance, debt held or insured by the Secretary and statutorily required low-income and very low-income use restrictions if any, associated with one or more multifamily housing project or projects to another multifamily housing project or projects.
“(2) Phased transfers—Transfers of project-based assistance under this section may be done in phases to accommodate the financing and other requirements related to rehabilitating or constructing the project or projects to which the assistance is transferred, to ensure that such project or projects meet the standards under paragraph (3).
“(3) Conditions—The transfer authorized in paragraph (1) is subject to the following conditions:
“(A) Number and bedroom size of units
“(i) For occupied units in the transferring project: The number of low-income and very low-income units and the configuration (i.e., bedroom size) provided by the transferring project shall be no less than when transferred to the receiving project or projects and the net dollar amount of Federal assistance provided to the transferring project shall remain the same in the receiving project or projects.
“(ii) For unoccupied units in the transferring project: The Secretary may authorize a reduction in the number of dwelling units in the receiving project or projects to allow for a reconfiguration of bedroom sizes to meet current market demands, as determined by the Secretary and provided there is no increase in the project-based assistance budget authority.
“(B) The transferring project shall, as determined by the Secretary, be either physically obsolete or economically nonviable, or be reasonably expected to become economically nonviable when complying with state or Federal requirements for community integration and reduced concentration of individuals with disabilities.
“(C) The receiving project or projects shall meet or exceed applicable physical standards established by the Secretary.
“(D) The owner or mortgagor of the transferring project shall notify and consult with the tenants residing in the transferring project and provide a certification of approval by all appropriate local governmental officials.
“(E) The tenants of the transferring project who remain eligible for assistance to be provided by the receiving project or projects shall not be required to vacate their units in the transferring project or projects until new units in the receiving project are available for occupancy.
“(F) The Secretary determines that this transfer is in the best interest of the tenants.
“(G) If either the transferring project or the receiving project or projects meets the condition specified in paragraph (4)(B)(i), any lien on the receiving project resulting from additional financing obtained by the owner shall be subordinate to any lien insured by the Federal Housing Administration transferred to, or placed on, such project by the Secretary, except that the Secretary may waive this requirement upon determination that such a waiver is necessary to facilitate the financing of acquisition, construction, and/or rehabilitation of the receiving project or projects.
“(H) If the transferring project meets the requirements of paragraph (4)(A), the owner or mortgagor of the receiving project or projects shall execute and record either a continuation of the existing use agreement or a new use agreement for the project where, in either case, any use restrictions in such agreement are of no lesser duration than the existing use restrictions; and
“(I) The transfer does not increase the cost (as defined in section 502 of the Congressional Budget Act of 1974(2 U.S.C. 661a)) of any FHA-insured mortgage, except to the extent that appropriations are provided in advance for the amount of any such increased cost.
“(4) For purposes of this section—
“(A) the terms “low-income” and “very low-income” shall have the meanings provided in section 3 of this Act;
“(B) the term multifamily housing project means housing that meets one of the following conditions—
“(i) housing that is subject to a mortgage insured under the National Housing Act;
“(ii) housing that has project-based assistance attached to the structure including projects undergoing mark to market debt restructuring under the Multifamily Assisted Housing Reform and Affordability Housing Act;
“(iii) housing that is assisted under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q);
“(iv) housing that is assisted under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), as such section existed before the enactment of the Cranston-Gonzales National Affordable Housing Act;
“(v) housing that is assisted under section 811 of the Cranston-Gonzales National Affordable Housing Act (42 U.S.C. 8013); or
“(vi) housing or vacant land that is subject to a use agreement;
“(C) the term project-based assistance means—
“(i) assistance provided under subsection (b) of this section;
“(ii) assistance for housing constructed or substantially rehabilitated pursuant to assistance provided under subsection (b)(2) of this section (as such section existed immediately before October 1, 1983);
“(iii) rent supplement payments under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s);
“(iv) interest reduction payments under section 236 and/or additional assistance payments under section 236(f)(2) of the National Housing Act (12 U.S.C. 1715z–1);
“(v) assistance payments made under section 202(c)(2) of the Housing Act of 1959 (12 U.S.C. 1701q(c)(2)); and
“(vi) assistance payments made under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(d)(2));
“(D) the term receiving project or projects means the multifamily housing project or projects to which some or all of the project-based assistance, debt, and statutorily required low-income and very low-income use restrictions are to be transferred; and
“(E) the term transferring project means the multifamily housing project which is transferring some or all of the project-based assistance, debt, and the statutorily required low-income and very low-income use restrictions to the receiving project or projects.
“(5) Implementation—The Secretary shall implement this subsection by publishing notice in the Federal Register.”
Sec. 209
“(g) Restrictions on assistance and eligibility
“(1) No assistance shall be provided under section 8 of this Act to any individual who—
“(A) is enrolled as a student at an institution of higher education (as defined under section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002));
“(B) is under 24 years of age;
“(C) is not a veteran;
“(D) is unmarried;
“(E) does not have a dependent child;
“(F) is not a person with disabilities, as such term is defined in subsection (b)(3)(E) of this section and was not receiving assistance under such section 8 as of November 30, 2005;
“(G) is not a youth who left foster care at age 14 or older and is at risk of becoming homeless; and
“(H) is not otherwise individually eligible, or has parents who, individually or jointly, are not eligible, to receive assistance under section 8 of this Act.
“(2) For purposes of determining the income of a person under section 8 of this Act, any financial assistance (in excess of amounts received for tuition and any other required fees and charges) that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or from an institution of higher education (as defined under section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except for a person over the age of 23 with dependent children.”
Sec. 210
Sec. 211
“(m) Maintaining rental assistance programs during the disposition of multifamily property
“(1) Authority—Notwithstanding any other provision of law, in managing and disposing of any multifamily property that is owned or has a mortgage held by the Secretary, and during the process of foreclosure on any property with a contract for rental assistance payments under this section or other programs administered by the Secretary, the Secretary shall maintain any rental assistance payments under this section and other programs that are attached to any dwelling units in the property.
“(2) Cost considerations—To the extent the Secretary determines, in consultation with the tenants and the local government that such a multifamily property owned or having a mortgage held by the Secretary is not feasible for continued rental assistance payments under such section 8 or other programs, based on consideration of—
“(A) the costs of rehabilitating and operating the property and all available Federal, State, and local resources, including rent adjustments, if applicable, under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (“MAHRAA”) (42 U.S.C. 1437f note); and
“(B) environmental conditions that cannot be remedied in a cost-effective fashion, the Secretary may, in consultation with the tenants of that property, contract for project-based rental assistance payments with an owner or owners of other existing housing properties, or provide other rental assistance.
“(3) Continuation of contract—The Secretary shall also take appropriate steps to ensure that project-based contracts remain in effect prior to foreclosure, subject to the exercise of contractual abatement remedies to assist relocation of tenants for imminent major threats to health and safety after written notice to and informed consent of the affected tenants and use of other available remedies, such as partial abatements or receivership.
“(4) Post-disposition—After disposition of any multifamily property described under this subsection, the contract and allowable rent levels on such properties shall be subject to the requirements of MAHRAA.”