---
kind: "section"
citation: "42 U.S.C. § 1490u"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1490u"
heading: "Housing preservation and revitalization program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1490u"
units:
  - "Chapter 8A — Slum Clearance, Urban Renewal, and Farm Housing"
  - "Subchapter III — Farm Housing"
---

# §1490u. Housing preservation and revitalization program

- (a) **Establishment—** The [Secretary](/usc/42/242q–4.md?p=2) shall carry out a program under this section for the preservation and revitalization of multifamily rental housing [projects](/usc/42/13641.md?p=2) financed under section [1484](/usc/42/1484.md), [1485](/usc/42/1485.md), or [1486](/usc/42/1486.md) of this title.
- (b) **Notice of maturing loans—**
  - (1) **To owners—** On an annual basis, the [Secretary](/usc/42/242q–4.md?p=2) shall provide written notice to each [owner](/usc/42/13641.md?p=4) of a property financed under section [1484](/usc/42/1484.md), [1485](/usc/42/1485.md), or [1486](/usc/42/1486.md) of this title that will mature within the 4-year period beginning upon the provision of the 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)](#f).
  - (2) **To tenants—**
    - (A) **In general—** On an annual basis, for each property financed under section [1484](/usc/42/1484.md), [1485](/usc/42/1485.md), or [1486](/usc/42/1486.md) of this title, not later than the date that is 2 years before the date that the loan will mature, the [Secretary](/usc/42/242q–4.md?p=2) shall provide written notice to each household residing in the property that informs them of—
      - (i) the date of the loan maturity;
      - (ii) the possible actions that may happen with respect to the property upon that maturity; and
      - (iii) how to protect their right to reside in [federally assisted housing](/usc/42/13641.md?p=2), or how to secure housing voucher, after that 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, in any circumstance in which the [Secretary](/usc/42/242q–4.md?p=2) proposes a restructuring to an [owner](/usc/42/13641.md?p=4) or an [owner](/usc/42/13641.md?p=4) proposes a restructuring to the [Secretary](/usc/42/242q–4.md?p=2), the [Secretary](/usc/42/242q–4.md?p=2) may restructure such existing housing loans, as the [Secretary](/usc/42/242q–4.md?p=2) considers appropriate, for the purpose of ensuring that those [projects](/usc/42/13641.md?p=2) have sufficient resources to preserve the [projects](/usc/42/13641.md?p=2) 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;
  - (4) providing other financial assistance, including advances, payments, and incentives (including the ability of [owners](/usc/42/13641.md?p=4) to obtain reasonable returns on investment) required by the [Secretary](/usc/42/242q–4.md?p=2); and
  - (5) permanently removing a portion of the housing units from income restrictions when sustained vacancies have occurred.
- (d) **Renewal of rental assistance—**
  - (1) **In general—** When the [Secretary](/usc/42/242q–4.md?p=2) proposes to restructure a loan or agrees to the proposal of an [owner](/usc/42/13641.md?p=4) to restructure a loan pursuant to [subsection (c)](#c), the [Secretary](/usc/42/242q–4.md?p=2) shall offer to renew the rental assistance contract under [section 1490a(a)(2) of this title](/usc/42/1490a.md?p=a-2) for a term that is the shorter of 20 years and the term of the restructured loan, subject to annual appropriations, provided that the [owner](/usc/42/13641.md?p=4) agrees to bring the property up to such standards that will ensure maintenance of the property as decent, safe, and sanitary housing for the full term of the rental assistance contract.
  - (2) **Additional rental assistance—** With respect to a [project](/usc/42/13641.md?p=2) described in [paragraph (1)](#d-1), if rental assistance is not available for all households in the [project](/usc/42/13641.md?p=2) for which the loan is being restructured pursuant to [subsection (c)](#c), the [Secretary](/usc/42/242q–4.md?p=2) may extend such additional rental assistance to unassisted households at that [project](/usc/42/13641.md?p=2) as is necessary to make the [project](/usc/42/13641.md?p=2) safe and affordable to low-income households.
- (e) **Restrictive use agreements—**
  - (1) **Requirement—** As part of the preservation and revitalization agreement for a [project](/usc/42/13641.md?p=2), the [Secretary](/usc/42/242q–4.md?p=2) shall obtain a restrictive use agreement that is recorded and obligates the [owner](/usc/42/13641.md?p=4) to operate the [project](/usc/42/13641.md?p=2) in accordance with this subchapter.
  - (2) **Term—**
    - (A) **No extension of rental assistance contract—** Except when the [Secretary](/usc/42/242q–4.md?p=2) enters into a 20-year extension of the rental assistance contract for a [project](/usc/42/13641.md?p=2), the term of the restrictive use agreement for the [project](/usc/42/13641.md?p=2) shall be consistent with the term of the restructured loan for the [project](/usc/42/13641.md?p=2).
    - (B) **Extension of rental assistance contract—** If the [Secretary](/usc/42/242q–4.md?p=2) enters into a 20-year extension of the rental assistance contract for a [project](/usc/42/13641.md?p=2), the term of the restrictive use agreement for the [project](/usc/42/13641.md?p=2) shall be for the longer of—
      - (i) 20 years; or
      - (ii) the remaining term of the loan for that [project](/usc/42/13641.md?p=2).
    - (C) **Termination—** The [Secretary](/usc/42/242q–4.md?p=2) may terminate the 20-year restrictive use agreement for a [project](/usc/42/13641.md?p=2) before the end of the term of the agreement if the 20-year rental assistance contract for the [project](/usc/42/13641.md?p=2) with the [owner](/usc/42/13641.md?p=4) is terminated at any time for reasons outside the control of the [owner](/usc/42/13641.md?p=4).
- (f) **Decoupling of rental assistance—**
  - (1) **Renewal of rental assistance contract—** If the [Secretary](/usc/42/242q–4.md?p=2) determines that a loan maturing during the 4-year period beginning upon the provision of the notice required under [subsection (b)(1)](#b-1) for a [project](/usc/42/13641.md?p=2) cannot reasonably be restructured in accordance with [subsection (c)](#c) because it is not financially feasible or the [owner](/usc/42/13641.md?p=4) does not agree with the proposed restructuring, and the [project](/usc/42/13641.md?p=2) was operating with rental assistance under [section 1490a of this title](/usc/42/1490a.md) and the recipient is a borrower under section [1484](/usc/42/1484.md) or [1485](/usc/42/1485.md) of this title, the [Secretary](/usc/42/242q–4.md?p=2) may renew the rental assistance contract, notwithstanding any requirement under [section 1490a of this title](/usc/42/1490a.md) that the recipient be a current borrower under section [1484](/usc/42/1484.md) or [1485](/usc/42/1485.md) of this title, for a term of 20 years, subject to annual appropriations.
  - (2) **Additional rental assistance—** With respect to a [project](/usc/42/13641.md?p=2) described in [paragraph (1)](#f-1), if rental assistance is not available for all households in the [project](/usc/42/13641.md?p=2) for which the loan is being restructured pursuant to [subsection (c)](#c), the [Secretary](/usc/42/242q–4.md?p=2) may extend such additional rental assistance to unassisted households at that [project](/usc/42/13641.md?p=2) as is necessary to make the [project](/usc/42/13641.md?p=2) safe and affordable to low-income households.
  - (3) **Rents—**
    - (A) **In general—** Any agreement to extend the term of the rental assistance contract under [section 1490a of this title](/usc/42/1490a.md) for a [project](/usc/42/13641.md?p=2) shall obligate the [owner](/usc/42/13641.md?p=4) to continue to maintain the [project](/usc/42/13641.md?p=2) as decent, safe, and sanitary housing and to operate the development as affordable housing in a manner that meets the goals of this subchapter.
    - (B) **Rent amounts—** Subject to [subparagraph (C)](#f-3-C), in setting rents, the [Secretary](/usc/42/242q–4.md?p=2)—
      - (i) shall determine the maximum initial rent based on current fair market rents established under [section 1437f of this title](/usc/42/1437f.md); and
      - (ii) may annually adjust the rent determined under [clause (i)](#f-3-B-i) by the operating cost adjustment factor as provided under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 ([42 U.S.C. 1437f](/usc/42/1437f.md) note).
    - (C) **Higher rent—**
      - (i) **In general—** [Subparagraph (B)](#f-3-B) shall not apply if the [Secretary](/usc/42/242q–4.md?p=2) determines that the budget-based needs of a [project](/usc/42/13641.md?p=2) require a higher rent than the rent described in [subparagraph (B)](#f-3-B).
      - (ii) **Rent—** If the [Secretary](/usc/42/242q–4.md?p=2) makes a positive determination under [clause (i)](#f-3-C-i), the [Secretary](/usc/42/242q–4.md?p=2) may approve a budget-based rent level for the [project](/usc/42/13641.md?p=2).
  - (4) **Conditions for approval—** Before the approval of a rental assistance contract authorized under this section, the [Secretary](/usc/42/242q–4.md?p=2) shall require, through an annual notice in the Federal Register, the [owner](/usc/42/13641.md?p=4) to submit to the [Secretary](/usc/42/242q–4.md?p=2) a plan that identifies financing sources and a timetable for renovations and improvements determined to be necessary by the [Secretary](/usc/42/242q–4.md?p=2) to maintain and preserve the [project](/usc/42/13641.md?p=2).
- (g) **Multifamily housing transfer technical assistance—** Under the program under this section, the [Secretary](/usc/42/242q–4.md?p=2) may provide grants to qualified [nonprofit](/usc/42/300s–3.md?p=3) organizations, housing cooperative [corporations](/usc/42/2297h.md?p=2), and public housing [agencies](/usc/42/8262.md?p=1) to provide technical assistance, including financial and legal services, to borrowers under loans under this subchapter for multifamily housing to facilitate the acquisition or preservation of such multifamily housing properties in areas where the [Secretary](/usc/42/242q–4.md?p=2) determines there is a risk of loss of affordable housing.
- (h) **Administrative expenses—** Of any amounts made available for the program under this section for any fiscal year, the [Secretary](/usc/42/242q–4.md?p=2) may use not more than $1,000,000 for administrative expenses for carrying out such program.
- (i) **Rulemaking—**
  - (1) **In general—** Not later than 180 days after July 11, 2026, the [Secretary](/usc/42/242q–4.md?p=2) shall—
    - (A) publish an advance notice of proposed rulemaking; and
    - (B) consult with appropriate stakeholders.
  - (2) **Interim final rule—** Not later than 1 year after July 11, 2026, the [Secretary](/usc/42/242q–4.md?p=2) shall publish an interim final rule to carry out this section.

## Source credit

(July 15, 1949, ch. 338, title V, § 545, as added Pub. L. 119–101, title V, § 502(e), July 11, 2026, 140 Stat. 919.)

## Notes

### Editorial Notes

### References in Text

Section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997, referred to in subsec. (f)(3)(B)(ii), is section 524 of title V of Pub. L. 105–65, which is set out as a note under section 1437f of this title.