42 U.S.C. § 1490u — Housing preservation and revitalization program

(a) Establishment. The Secretary must operate a program to preserve and revitalize multifamily rental housing projects financed under sections 1484, 1485, or 1486 of this title. (b) Notice of maturing loans. (1) To owners. Each year, the Secretary must give each owner written notice when a property financed under one of those sections will reach loan maturity within the next 4 years. The notice must describe available options and financial incentives for extending the loan or decoupling a rental-assistance contract under subsection (f). (2) To tenants. (A) In general. Each year, no later than 2 years before the loan matures, the Secretary must give each household in each such property written notice stating the maturity date, what may happen to the property then, and how household members can protect their right to live in federally assisted housing or obtain a housing voucher after maturity. (B) Language. The notice must be in plain English and translated into other languages when a significant number of residents in the area speak those languages. (c) Loan restructuring. When the Secretary proposes restructuring to an owner, or an owner proposes it to the Secretary, the Secretary may restructure existing housing loans as appropriate so projects have enough resources to remain safe and affordable for low-income residents and farm laborers. The Secretary may—(1) reduce or eliminate interest; (2) delay loan payments; (3) place the loan behind other debt, reduce the debt, or recalculate its payment schedule; (4) give other financial help, including advances, payments, and incentives required by the Secretary, including allowing owners reasonable investment returns; and (5) permanently remove some units from income restrictions when vacancies have continued. (d) Renewal of rental assistance. (1) In general. When the Secretary proposes or accepts a restructuring under subsection (c), the Secretary must offer to renew the rental-assistance contract under section 1490a(a)(2) for the shorter of 20 years or the restructured loan’s term, subject to annual appropriations. The owner must agree to bring the property up to standards that keep it decent, safe, and sanitary for the contract’s entire term. (2) Additional rental assistance. If assistance is unavailable for every household in the project whose loan is being restructured, the Secretary may extend enough assistance to households not already assisted to make the project safe and affordable for low-income households. (e) Restrictive use agreements. (1) Requirement. As part of the project’s preservation and revitalization agreement, the Secretary must obtain a recorded agreement requiring the owner to operate the project under this subchapter. (2) Term. (A) No extension of rental assistance contract. Unless the Secretary enters a 20-year rental-assistance extension, the restriction must last as long as the restructured loan. (B) Extension of rental assistance contract. If the Secretary enters a 20-year extension, the restriction must last the longer of 20 years or the loan’s remaining term. (C) Termination. The Secretary may end a 20-year restriction early if the owner’s 20-year rental-assistance contract ends for reasons outside the owner’s control. (f) Decoupling of rental assistance. (1) Renewal of rental assistance contract. If the Secretary decides that a loan maturing within the 4-year notice period cannot reasonably be restructured because restructuring is not financially feasible or the owner disagrees, and the project had assistance under section 1490a and the recipient is a borrower under section 1484 or 1485, the Secretary may renew the assistance contract for 20 years, subject to annual appropriations. This is allowed even if section 1490a would otherwise require the recipient to be a current borrower. (2) Additional rental assistance. The Secretary may provide enough assistance to unassisted households to make the project safe and affordable for low-income households. (3) Rents. (A) In general. An agreement extending assistance must require the owner to keep the project decent, safe, and sanitary and operate it as affordable housing in a way that meets this subchapter’s goals. (B) Rent amounts. Unless subparagraph (C) applies, the Secretary must set the maximum starting rent using current fair-market rents under section 1437f and may adjust it each year using the operating-cost adjustment factor under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997. (C) Higher rent. (i) In general. Subparagraph (B) does not apply if the Secretary decides the project’s budget-based needs require a higher rent. (ii) Rent. After that decision, the Secretary may approve a budget-based rent level. (4) Conditions for approval. Before approving an assistance contract under this section, the Secretary must require, through an annual Federal Register notice, an owner to submit a plan identifying financing sources and a timetable for renovations and improvements the Secretary finds necessary to maintain and preserve the project. (g) Multifamily housing transfer technical assistance. The Secretary may give grants to qualified nonprofit organizations, housing cooperative corporations, and public housing agencies for technical help, including financial and legal services, to borrowers with multifamily housing loans under this subchapter. The help must facilitate acquiring or preserving properties in areas where the Secretary finds a risk of losing affordable housing. (h) Administrative expenses. From money made available for this program in a fiscal year, the Secretary may use no more than $1,000,000 for administration. (i) Rulemaking. (1) In general. No later than 180 days after July 11, 2026, the Secretary must publish an advance notice of proposed rulemaking and consult appropriate stakeholders. (2) Interim final rule. No later than 1 year after July 11, 2026, the Secretary must publish an interim final rule carrying out this section.