(1) the costs of preliminary expenses, in the amount of $500, for a public housing agency, but only in the first year it administers a tenant-based assistance program under the United States Housing Act of 1937 and only if, immediately before the effective date of this Act, it was not administering a tenant-based assistance program under the 1937 Act (as in effect immediately before the effective date of this Act), in connection with its initial increment of assistance received; (2) the costs incurred in assisting families who experience difficulty (as determined by the Secretary) in obtaining appropriate housing under the program; and (3) extraordinary costs approved by the Secretary. SECTION 8 CONTRACT RENEWALS EXCERPT FROM THE BALANCED BUDGET DOWNPAYMENT ACT, I [Public Law 104–99; 110 Stat. 44; 42 U.S.C. 1437f note] SECTION 8 CONTRACT RENEWALS SEC. 405. [42 U.S.C. 1437f note] (a) Notwithstanding part 24 of title 24 of the Code of Federal Regulations, for fiscal year 1996 and henceforth, the Secretary of Housing and Urban Development may use amounts available for the renewal of assistance under section 8 of the United States Housing Act of 1937, upon termination or expiration of a contract for assistance under section 8 of such Act of 1937 (other than a contract for tenant-based assistance and notwithstanding section 8(v) of such Act for loan management assistance), to provide assistance under section 8 of such Act, subject to the Section 8 Existing Fair Market Rents, for the eligible families assisted under the contracts at expiration or termination, which assistance shall be in accordance with terms and conditions prescribed by the Secretary. * MULTIFAMILY HOUSING MORTGAGE & ASSISTANCE RESTRUCTURING EXCERPT FROM DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 1998 [Public Law 105-65; 111 Stat. 1384; 42 U.S.C. 1437f note] TITLE V-HUD MULTIFAMILY HOUSING REFORM SEC. 501. TABLE OF CONTENTS. The table of contents for this title is as follows: TITLE V-HUD MULTIFAMILY HOUSING REFORM Sec. 510. Short title. SUBTITLE A-FHA-INSURED MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING Sec. 511. Findings and purposes. Sec. 512. Definitions. Sec. 513. Authority of participating administrative entities. Sec. 514. Mortgage restructuring and rental assistance sufficiency plan. Sec. 515. Section 8 renewals and long-term affordability commitment by owner of project. Sec. 516. Prohibition on restructuring. Sec. 517. Restructuring tools. Sec. 518. Management standards. Sec. 519. Monitoring of compliance. Sec. 520. Reports to Congress. Sec. 521. GAO audit and review. Sec. 522. Regulations. Sec. 523. Technical and conforming amendments. Sec. 524. Section 8 contract renewals. 1 SUBTITLE B-MISCELLANEOUS PROVISIONS Sec. 531. Rehabilitation grants for certain insured projects. Sec. 532. GAO report on section 8 rental assistance for multifamily housing projects. SUBTITLE C-ENFORCEMENT PROVISIONS Sec. 541. Implementation. Sec. 542. Income verification. PART 1-FHA SINGLE FAMILY AND MULTIFAMILY HOUSING Sec. 551. Authorization to immediately suspend mortgagees. Sec. 552. Extension of equity skimming to other single family and multifamily housing programs. Sec. 553. Civil money penalties against mortgagees, lenders, and other participants in FHA programs. 1 Section 613 of the Mark-to-Market Extension Act of 2001 (P.L. 107-116; 115 Stat. 2224) inserted a new section 525 at the end of subtitle A without including a conforming amendment to the table of contents. PART 2-FHA MULTIFAMILY PROVISIONS Sec. 561. Civil money penalties against general partners, officers, directors, and certain managing agents of multifamily projects. Sec. 562. Civil money penalties for noncompliance with section 8 HAP contracts. Sec. 563. Extension of double damages remedy. Sec. 564. Obstruction of Federal audits. SUBTITLE D-OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING Sec. 571. Establishment of Office of Multifamily Housing Assistance Restructuring. Sec. 572. Director. Sec. 573. Duty and authority of Director. Sec. 574. Personnel. Sec. 575. Budget and financial reports. Sec. 576. Limitation on subsequent employment. Sec. 577. Audits by GAO. Sec. 578. Suspension of program because of failure to appoint Director. 1 Sec. 579. Termination. SEC. 510. [12 U.S.C. 1701 note] SHORT TITLE. This title may be cited as the "Multifamily Assisted Housing Reform and Affordability Act of 1997”. Subtitle A-FHA-Insured Multifamily Housing Mortgage and Housing Assistance Restructuring 2 SEC. 511. [42 U.S.C. 1437f note] FINDINGS AND PURPOSES. (a) FINDINGS.-Congress finds that— 2 (1) there exists throughout the Nation a need for decent, safe, and affordable housing; (2) as of the date of enactment of this Act, 3 it is estimated that (A) the insured multifamily housing portfolio of the Federal Housing Administration consists of 14,000 rental properties, with an aggregate unpaid principal mortgage balance of $38,000,000,000; and (B) approximately 10,000 of these properties contain housing units that are assisted with project-based rental assistance under section 8 of the United States Housing Act of 1937; (3) FHA-insured multifamily rental properties are a major Federal investment, providing affordable rental housing to an estimated 2,000,000 low- and very low-income families; 1 Section 624(a) of the Mark-to-Market Extension Act of 2001 (P.L. 107-116; 115 Stat. 2224) replaced section 578 in its entirety without including a conforming amendment to the table of contents. 2 Section 621(1) of the Mark-to-Market Extension Act of 2001 (Public Law 107-116; 115 Stat. 2226; enacted January 10, 2002) amended section 579(a) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 in its entirety. Before the enactment of Public Law 107116, section 579(a) read as follows: "(a) REPEAL.-Subtitle A (except for section 524) and subtitle D (except for this section) are repealed effective October 1, 2001.". This title is shown as if the provisions of subtitles A and D were not repealed by such section 579(a) (see the date of enactment of Public Law 107-116 above) and the amendments made to this title by Public Law 107-116 were executed to those provisions. Paragraphs (1) and (2) of section 579(a), as amended (set forth, post, this part) provide for repeal of subtitle A (except for section 524) effective October 1, 2006 and subtitle D (except for section 579) effective October 1, 2004. 3 October 27, 1997. (4) approximately 1,600,000 of these families live in dwelling units that are assisted with project-based rental assistance under section 8 of the United States Housing Act of 1937; (5) a substantial number of housing units receiving project-based assistance have rents that are higher than the rents of comparable, unassisted rental units in the same housing rental market; (6) many of the contracts for project-based assistance will expire during the several years following the date of enactment of this Act; 1 (7) it is estimated that (A) if no changes in the terms and conditions of the contracts for project-based assistance are made before fiscal year 2000, the cost of renewing all expiring rental assistance contracts under section 8 of the United States Housing Act of 1937 for both project-based and tenantbased rental assistance will increase from approximately $3,600,000,000 in fiscal year 1997 to over $14,300,000,000 by fiscal year 2000 and some $22,400,000,000 in fiscal year 2006: (B) of those renewal amounts, the cost of renewing project-based assistance will increase from $1,200,000,000 in fiscal year 1997 to almost $7,400,000,000 by fiscal year 2006; and (C) without changes in the manner in which projectbased rental assistance is provided, renewals of expiring contracts for project-based rental assistance will require an increasingly larger portion of the discretionary budget authority of the Department of Housing and Urban Development in each subsequent fiscal year for the foreseeable future; (8) absent new budget authority for the renewal of expiring rental contracts for project-based assistance, many of the FHA-insured multifamily housing projects that are assisted with project-based assistance are likely to default on their FHA-insured mortgage payments, resulting in substantial claims to the FHA General Insurance Fund and Special Risk Insurance Fund; (9) more than 15 percent of federally assisted multifamily housing projects are physically or financially distressed, including a number which suffer from mismanagement; (10) due to Federal budget constraints, the downsizing of the Department of Housing and Urban Development, and diminished administrative capacity, the Department lacks the ability to ensure the continued economic and physical wellbeing of the stock of federally insured and assisted multifamily housing projects; (11) the economic, physical, and management problems facing the stock of federally insured and assisted multifamily housing projects will be best served by reforms that (A) reduce the cost of Federal rental assistance, including project-based assistance, to these projects by re 1 October 27, 1997. |