TRANSITION AND OTHER LOW-INCOME HOUSING EXCERPTS FROM CRANSTON-GONZALEZ NATIONAL AFFORDABLE [Public Law 101-625; 104 Stat. 4249; 12 U.S.C. 4101 note, 4125] TITLE VI-PRESERVATION OF AFFORDABLE RENTAL HOUSING Subtitle A-Prepayment of Mortgages Insured Under National Housing Act SEC. 601. PREPAYMENT OF MORTGAGES. (a) IN GENERAL.-Subtitles A and B of the Emergency Low Income Housing Preservation Act of 1987 (12 U.S.C. 17157 note) are amended to read as follows: (b) TABLE OF CONTENTS.-The table of contents of such Act is amended by striking the items relating to subtitles A and B of title II and inserting the following: SEC. 602. RELATED NATIONAL HOUSING ACT AMENDMENTS. (a) INSURANCE FOR SECOND MORTGAGE FINANCING.-Section 241(f) of the National Housing Act is amended to read as follows: (b) APPROVAL PRIOR TO FORECLOSURE.-Section 250(b) of such Act (12 U.S.C. 1715z-15(b)) is amended to read as follows: (c) REPEALER.-Section 250(c) of such Act is hereby repealed, and section 250(d) is redesignated as section 250(c). SEC. 603. RELATED UNITED STATES HOUSING ACT OF 1937 AMENDMENTS. Section 89(v)(2) 1 of the United States Housing Act of 1937 is amended by striking out "Emergency Low Income Housing Preservation Act of 1987" and inserting "Low-Income Housing Preservation and Resident Homeownership Act of 1990". SEC. 604. TRANSITION PROVISIONS. (a) HOUSING ELIGIBLE FOR ELECTION.-Any owner of housing that becomes eligible low-income housing before January 1, 1991 and who, before such date, filed a notice of intent under section 222 of 1 So in law. Probably means section 8(vX2). 1 the Emergency Low Income Housing Preservation Act of 1987 (as such section existed before the date of the enactment of this Act) 1 or under section 212 of such Act (as amended by section 601(a)) may elect to be subject to (1) the provisions of such Act as in effect before the date of the enactment of this Act, or (2) the provisions of the Low-Income Housing Preservation and Resident Homeownership Act of 1990, after the date of the enactment of this Act.1 The Secretary shall establish procedures for owners to make the election under the preceding sentence. (b) RIGHT OF CONVERSION TO NEW SYSTEM.-Any owner who has filed a plan of action on or before October 11, 1990, shall have the right to convert to the system of incentives and restrictions under this subtitle, with such adjustments as the Secretary determines to be appropriate to compensate for the value of any incentives the owner received under the Emergency Low Income Housing Preservation Act of 1987. Owners filing plans after such date shall not have any right under this subsection. (c) EFFECTIVENESS OF REPEALED PROVISIONS.-Notwithstanding the amendment made by section 601(a), the provisions of the Emergency Low Income Housing Preservation Act of 1987 (as in effect immediately before the date of the enactment of this Act)1 shall apply with respect to any housing for which the election under subsection (a)(1) is made. (d) REGULATIONS.-Not later than the expiration of the 90-day period beginning on the date of the enactment of this Act,1 the Secretary of Housing and Urban Development shall, subject to the provisions of section 553 of title 5, United States Code, publish proposed rules to implement this subtitle and the amendments made by this subtitle. Not later than 45 days after the expiration of the period under the preceding sentence the Secretary shall issue interim or final rules to implement such provisions. [12 U.S.C. 4101 note] SEC. 605. EFFECTIVE DATE. This subtitle shall take effect on the date of the enactment of this Act.1 [12 U.S.C. 4101 note] Subtitle B-Other Preservation Provisions SEC. 611. SECTION 236 RENTAL ASSISTANCE. (a) DEFINITION OF INCOME.-Section 236(m) of the National Housing Act (12 U.S.C. 1715z-1) is amended by inserting before the period at the end of the first sentence the following: ", except that any amounts not actually received by the family may not be considered as income under this subsection". (b) RENT CHARGES.— (1) PROJECTS ASSISTED UNDER SECTION 236.-Section 236(f) of the National Housing Act (12 U.S.C. 1715z-1(f)) is amended by adding at the end the following new paragraph: “(5) * 1 The date of enactment was November 28, 1990. (2) INSURED PROJECTS.-Section 221(f) of the National Housing Act (12 U.S.C. 17152(f)) is amended by adding at the end the following new undesignated paragraph: SEC. 612. MANAGEMENT AND PRESERVATION OF FEDERALLY ASSISTED HOUSING. (a) SECTION 236.-Section 236(f) of the National Housing Act, as amended by the preceding provisions of this Act, is further amended by adding at the end the following new paragraph: (b) SECTION 221.-Section 221 of the National Housing Act is amended by inserting the following new subsection after subsection (k): SEC. 613. ASSISTANCE TO PREVENT PREPAYMENT UNDER STATE MORTGAGE PROGRAMS. (a) SECTION 8 ASSISTANCE. (1) AUTHORITY.-Section 8(d)(2)(A)) of the United States Housing Act of 1937 (42 U.S.C. 1437f(d)(2)(A)) is amended by inserting after the period at the end the following: (2) CONTRACT TERM.-Section 8(d)(2)(C) of the United States Housing Act of 1937 (42 U.S.C. 1437f(d)(2)(C)) is amended by inserting after the period at the end the following: (b) STATE PRESERVATION PROJECT ASSISTANCE. (1) IN GENERAL.-Upon application by a State or local housing authority (including public housing agencies), the Secretary of Housing and Urban Development may make available, from sources of assistance appropriated to preserve the low and moderate income status of projects with expiring Federal use restrictions, assistance to such State or local housing authorities for use in preventing the loss of housing affordable for low and moderate income families that is assisted under a State program under the terms of which the owner may prepay a State assisted or subsidized mortgage on such housing. The application of the State or local housing authority shall demonstrate to the Secretary that the total amount of incentives provided to the owner to induce the owner to preserve the low and moderate income status of the project shall not exceed the level of incentives which may be provided to a similarly situated project with expiring Federal use restrictions under subtitle B of title II of the Housing and Community Development Act of 1987. (2) SECTION 8.-Any assistance under section 8 of the United States Housing Act of 1937 made available pursuant to this subsection may be used (i) to supplement any assistance available on existing section 8 contracts, or (ii) to provide additional assistance to structures to ensure that all units occupied by tenants who are lower income families (as such term is defined in section 3(b) of the United States Housing Act of 1937) pay rents not exceeding 30 percent of their adjusted incomes. Any project receiving assistance hereunder shall be subject to standards, inspections and sanctions established by the Secretary under section 224(e)1 of the Housing and Community Development Act of 1987. Any such section 8 assistance shall be provided for a term and at the fair market rent levels or such higher levels used as applicable for eligible low-income housing that receives incentives under subtitle B of title II of the Housing and Community Development Act of 1987. (3) RESTRICTION.-Assistance may be provided under this subsection only to State and local housing authorities that require any housing receiving such assistance to remain affordable for lower and moderate income tenants for the period during which assistance under this subsection is received. [12 U.S.C. 4125] 1 So in law. Probably should refer to section 222(d). EMERGENCY LOW INCOME HOUSING PRESERVATION ACT OF 1987 EXCERPT FROM HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1987-PRIOR TO NOVEMBER 28, 1990 [Public Law 100-242; 101 Stat. 1877; 12 U.S.C. 17151 note] TITLE II-PRESERVATION OF LOW INCOME HOUSING1 Subtitle A-General Provisions SEC. 201. SHORT TITLE. This title may be cited as the "Emergency Low Income Housing Preservation Act of 1987". [12 U.S.C. 17151 note] SEC. 202. FINDINGS AND PURPOSE. (a) FINDINGS.-The Congress finds that (1) in the next 15 years, more than 330,000 low income housing units insured or assisted under sections 221(d)(3) and 236 of the National Housing Act could be lost as a result of the termination of low income affordability restrictions; (2) in the next decade, more than 465,000 low income housing units produced with assistance under section 8 of the United States Housing Act of 1937 could be lost as a result of the expiration of the rental assistance contracts; (3) some 150,000 units of rural low income housing financed under section 515 of the Housing Act of 1949 are threatened with loss as a result of the prepayment of mortgages by owners; (4) the loss of this privately owned and federally assisted housing, which would occur in a period of sharply rising rents on unassisted housing and extremely low production of additional low rent housing, would inflict unacceptable harm on current tenants and would precipitate a grave national crisis in the supply of low income housing that was neither anticipated nor intended when contracts for these units were entered into; (5) the loss of this affordable housing, to encourage the production of which the public has provided substantial benefits over past years, would irreparably damage hard-won progress toward such important and long-established national objectives as 1 Subtitles A and B of this title were amended in their entirety by section 601(a) of Pub. L. 101-625. See ante, this part. |