IB
Union Calendar No. 327
109th CONGRESS
2d Session
H. R. 5527
[Report No. 109–572]
IN THE HOUSE OF REPRESENTATIVES
June 6, 2006
Mr. Ney (for himself, Ms. Waters, Mr. Gerlach, and Mr. Frank of Massachusetts) introduced the following bill; which was referred to the Committee on Financial Services
July 17, 2006
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed
Strike out all after the enacting clause and insert the part printed in italic
A BILL
To extend the authority of the Secretary of Housing and Urban Development to restructure mortgages and rental assistance for certain assisted multifamily housing.
Short title
This Act may be cited as the Mark-to-Market Extension Act of 2006
.
Reauthorization
Section 579 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended—
in subsection (a)(1), by striking October 1, 2006
and inserting October 1, 2011
; and
in subsection (b), by striking October 1, 2006
and inserting October 1, 2011
.
Exception rents
Section 514(g)(2)(A) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by striking five percent
and inserting nine percent
.
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. 1437f note) is amended by inserting before the period at the end the following: : Provided, That if such purchaser acquires such project subsequent to the date of recordation of the affordability agreement described in section 514(e)(6), (A) such purchaser must acquire such project on or before the later of (i) five years after the date of recordation of the affordability agreement and (ii) two years after the date of enactment of this title; and (B) the Secretary must have received, and determined acceptable, such purchaser’s application for modification, assignment or forgiveness prior to such purchaser’s acquisition of the project
.
Definitions
Section 512 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding at the end the following new paragraph:
Disaster-damaged eligible project
The term disaster-damaged eligible project
means an eligible multifamily housing project—
that is located in a county that was declared a major disaster area on or after January 1, 2005, by the President pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq);
whose owner carried casualty and liability insurance covering such project in amounts required by the Secretary;
that suffered damages not covered by such insurance that the Secretary determines are likely to exceed $5,000 per unit in connection with the natural disaster that was the subject of such designation; and
whose owner requests restructuring within two years following the date that such damages were incurred.
.
Disaster-damaged eligible projects
Market rent determinations
Subparagraph (B) of section 514(g)(1) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended to read as follows:
if those rents cannot be determined—
with respect to a disaster-damaged eligible project, are equal to 100 percent of the fair market rents for the relevant market area (in effect at the time of such disaster); and
with respect to other eligible multifamily housing projects, are equal to 90 percent of the fair market rents for the relevant market area.
.
Owner Investment
Section 517(c) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding at the end the following new paragraph:
Properties damaged by natural disasters
With respect to a disaster-damaged eligible project, the owner contribution toward rehabilitation needs shall be determined in accordance with paragraph (2)(C).
.
July 17, 2006
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed