RURAL HOUSING PRESERVATION ACT OF 2007
Rep. Lincoln Davis (D-TN) and Rep. Geoff Davis (R-KY) introduced HR 4002: The Rural Housing Preservation Act of 2007 on October 30, 2007. The bill will establish a program to preserve rural multifamily housing assisted under the Housing Act of 1949.
The bill does the following:
- Authorize a program to preserve Section 515 housing project developments for long-term affordable use and to repair the revitalization of such properties; and
- Provide voucher assistance for tenants who live in such projects or who are displaced as a result of prepayment or foreclosure of such projects
Under HR 4002 a new Section 544 preservation program would be created to provide financial incentives and other assistance to owners of eligible projects through long term use agreements. These incentives would include but are not limited to the following: loan forgiveness, payment deferrals, re-amortizations, grants, loans, and loan guarantees that have been available through the USDA’s Multi-Family Housing Preservation and Revitalization Restructuring Program (MPR) demonstration.
For any property participating in the program, the bill would leave in place current law regarding use restrictions for Section 515 developments which consists of continued affordability for low-income tenants lasting 30 years or the term of USDA’s loan, whichever is longer. The legislation also insures that tenants living in restructured properties will not pay more than 30% of income for rent. Projects that are deemed ineligible to participate in the program include: owners who were participating in active lawsuits; had a history of poor property management; or were in default on a Section 515 loan.
The bill would also add two new types of vouchers under Section 542 for tenants in Section 515 properties preserved under Section 544 who did not have Section 521 or Section 8 rental assistance and needed help to keep their rent costs at 30 percent of income; and tenants of Section 515 properties whose mortgages were prepaid or foreclosed regardless of whether the tenants are required to relocate or remain on the properties.
HR 4002 is not expected to be considered by the House during this Congressional session. It will likely be a part of a larger package of preservation bills which would include preservation of HUD and USDA properties to be considered during the next session.
Select the links below to view information regarding H.R. 4002:
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H.R. 4002 - Rural Housing Preservation Act of 2007
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Press Release - Rep. Davis Introduces Rural Rental Housing Legislation
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H.R. 3873: SECTION 515 RURAL HOUSING
PROPERTY TRANSFER IMPROVEMENT ACT OF 2007
Rep. Paul Hodes (D-NH) and Rep. Shelley Moore Capito (R-WV) introduced HR 3873: Section 515 Rural Housing Property Transfer Act of 2007 on October 17, 2007. HR 3873 is intended to help expedite transfers of ownership of rural rental properties financed under the Section 515 program in cases where the properties are being rehabilitated or preserved as affordable housing.
The House Financial Services Committee approved the bill on October 31, 2007 and it now moves onto the House Floor.
The bill establishes new requirements for USDA approval of ownership transfers for Section 515 properties. The new requirements include the following USDA directives:
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To make whatever changes are needed to expedite approval of applications including: changing approval procedures, increasing staff and resources, improving outreach to project sponsors regarding information that is required to be submitted for such approvals, changing approval authority between national offices and State and local offices, simplifying approval requirements, establishing uniformity of transfer requirements among State offices, and other actions which would expedite approval;
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To consult with the IRS and HUD to simplify the coordination of rules, forms, and approval requirements for Section 515 properties that have financing from the Low Income Housing Tax Credit or tax-exempt bonds; and
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To actively facilitate transfers of the ownerships of projects for preservation and rehabilitation.
The bill also states that USDA’s Office or Rental Housing Preservation (ORHP) has final regulatory authority over all Section 515 property transfers. In addition, it states that ORHP may work with and seek recommendations from the State Rural Development Offices of the USDA.
The bill establishes the following deadlines for processing transfer applications. RD state and local offices must approve or deny a completed application after it is submitted within:
If an application has not been acted upon within the appropriate deadline, it must be transferred to ORHP which must approve or deny the application within:
Final decisions on Section 515 transfers shall be appealed to the USDA National Appeals Division.
The USDA would also be required to submit a report to Congress by July 1, 2008 to explain what actions it took, the resulting improvements, and any legislative changes necessary to help expedite Section 515 transfers.
Select the link below to view H.R. 3873:
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H.R. 3873 - Rural Housing Property Transfer Improvement Act of 2007
Additional Resources:
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H.R. 2895,
National Affordable Housing Trust Fund Act
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