[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 647 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 647
To extend for 5 years the Mark-to-Market program of the Department of
Housing and Urban Development.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 23, 2007
Ms. Waters (for herself, Mr. Frank of Massachusetts, and Ms. Pryce of
Ohio) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To extend for 5 years the Mark-to-Market program of the Department of
Housing and Urban Development.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Mark-to-Market
Extension Act of 2007''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
Sec. 4. Extension of Mark-to-Market program.
Sec. 5. Exception rents.
Sec. 6. Otherwise eligible projects.
Sec. 7. Disaster-damaged eligible projects.
Sec. 8. Period of eligibility for nonprofit debt relief.
Sec. 9. Effective date.
SEC. 2. PURPOSES.
The purpose of this Act is to--
(1) continue the progress of the Multifamily Assisted
Housing Reform and Affordability Act of 1997, as amended by the
Mark-To-Market Extension Act of 2001;
(2) expand eligibility for Mark-to-Market restructuring so
as to further the preservation of affordable housing in a cost-
effective manner; and
(3) provide for the preservation and rehabilitation of
projects damaged by Hurricanes Katrina, Rita, and Wilma, or by
other natural disasters.
SEC. 3. DEFINITIONS.
Section 512 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1473f note) is amended by adding
at the end the following:
``(20) Disaster-damaged eligible project.--
``(A) In general.--The term `disaster-damaged
eligible project' means an otherwise eligible
multifamily housing project--
``(i) that is located in a county that was
designated a major disaster area on or after
January 1, 2005, by the President pursuant to
title IV of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C.
5121 et seq.);
``(ii) whose owner carried casualty and
liability insurance covering such project in an
amount required by the Secretary;
``(iii) that suffered damages not covered
by such insurance that the Secretary determines
is likely to exceed $5,000 per unit in
connection with the natural disaster that was
the subject of the designation described in
subparagraph (A); and
``(iv) whose owner requests restructuring
of the project not later than 2 years after the
date that such damage occurred.
``(B) Rule of construction.--A disaster-damaged
eligible project shall be eligible for amounts under
this Act without regard to the relationship between
rent levels for the assisted units in such project and
comparable rents for the relevant market area.''.
SEC. 4. EXTENSION OF MARK-TO-MARKET PROGRAM.
Section 579 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1473f note) is amended by striking
``October 1, 2006'' each place that term appears and inserting
``October 1, 2011''.
SEC. 5. EXCEPTION RENTS.
Section 514(g)(2) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1473f note) is amended--
(1) by inserting ``disaster-damaged eligible projects and''
after ``waive this limit''; and
(2) by striking ``five percent'' and inserting ``9
percent''.
SEC. 6. OTHERWISE ELIGIBLE PROJECTS.
Section 514 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1473f note) is amended by adding
at the end the following:
``(i) Other Eligible Projects.--
``(1) In general.--Notwithstanding any other provision of
this subtitle, a project that meets the requirements of
subparagraphs (B) and (C) of section 512(2) but does not meet
the requirements of subparagraph (A) of section 512(2), may be
treated as an eligible multifamily housing project on an
exception basis if the Secretary determines, subject to
paragraph (2), that such treatment is necessary to preserve the
project in the most cost-effective manner in relation to other
alternative preservation options.
``(2) Owner request.--
``(A) Request required.--The Secretary shall not
treat an otherwise eligible project described under
paragraph (1) as an eligible multifamily housing
project unless the owner of the project requests such
treatment.
``(B) No adverse treatment if no request made.--If
the owner of a project does not make a request under
subparagraph (A), the Secretary shall not withhold from
such project any other available preservation option.
``(3) Cancellation.--
``(A) Timing.--At any time prior to the completion
of a mortgage restructuring under this subtitle, the
owner of a project may--
``(i) withdraw any request made under
paragraph (2)(A); and
``(ii) pursue any other option with respect
to the renewal of such owner's section 8
contract pursuant to any applicable statute or
regulation.
``(B) Documentation.--If an owner of a project
withdraws such owner's request and pursues other
renewal options under this paragraph, such owner shall
be entitled to submit documentation or other
information to replace the documentation or other
information used during processing for mortgage
restructuring under this subtitle.
``(4) Limitation.--The Secretary may exercise the authority
to treat projects as eligible multifamily housing projects
pursuant to this subsection only to the extent that the number
of units in such projects do not exceed 10 percent of all units
for which mortgage restructuring pursuant to section 517 is
completed.''.
SEC. 7. DISASTER-DAMAGED ELIGIBLE PROJECTS.
(a) Market Rent Determinations.--Section 514(g)(1)(B) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1473f note) is amended by striking ``determined, are equal'' and
inserting the following: ``determined--
``(i) with respect to a disaster-damaged
eligible property, are equal to 100 percent of
the fair market rents for the relevant market
area (as such rents were in effect at the time
of such disaster; and
``(ii) with respect to other eligible
multifamily housing projects, are equal''.
(b) Owner Investment.--Section 517(c) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1473f note) is
amended by adding at the end the following:
``(3) Properties damaged by natural disasters.--With
respect to a disaster-damaged eligible property, the owner
contribution toward rehabilitation needs shall be determined in
accordance with paragraph (2)(C).''.
SEC. 8. PERIOD OF ELIGIBILITY FOR NONPROFIT DEBT RELIEF.
Section 517(a)(5) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1473f note) is amended by adding
at the end the following: ``If such purchaser acquires such project
subsequent to the date of recordation of the affordability agreement
described in section 514(e)(6)--
``(1) such purchaser shall acquire such project on or
before the later of--
``(A) 5 years after the date of recordation of the
affordability agreement; or
``(B) 2 years after the date of enactment of the
Mark-to-Market Extension Act of 2007; and
``(2) the Secretary shall have received, and determined
acceptable, such purchaser's application for modification,
assignment, or forgiveness prior to the acquisition of the
project by such purchaser.''.
SEC. 9. EFFECTIVE DATE.
This Act, and the amendments made by this Act, shall take effect on
the earlier of--
(1) the date of enactment of this Act; or
(2) September 30, 2007.
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