119-s885

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 885 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 885

To establish a permanent rural housing preservation and revitalization 
 program, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 March 6, 2025

Mrs. Shaheen (for herself and Mr. Moran) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
 and Urban Affairs

_______________________________________________________________________

 A BILL

To establish a permanent rural housing preservation and revitalization 
 program, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Strategy and Investment in Rural 
Housing Preservation Act of 2025''.

SEC. 2. PERMANENT ESTABLISHMENT OF HOUSING PRESERVATION AND 
 REVITALIZATION PROGRAM.

 Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is 
amended by adding at the end the following:

``

SEC. 545. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.

 ``

    (a) Establishment.--The Secretary shall carry out a program under 
this section for the preservation and revitalization of multifamily 
rental housing projects financed under 

section 514, 515, or 516.
 ``

    (b) Notice of Maturing Loans.--
 ``

    (1) To owners.--On an annual basis, the Secretary shall 
 provide written notice to each owner of a property financed 
 under 

section 514, 515, or 516 that will mature within the 4-
 year period beginning upon the provision of the notice, setting 
 forth the options and financial incentives that are available 
 to facilitate the extension of the loan term or the option to 
 decouple a rental assistance contract pursuant to subsection

    (f) .
 ``

    (2) To tenants.--
 ``
        (A) In general.--For each property financed under 
 

section 514, 515, or 516, beginning not later than the 
 date that is 3 years before the date on which the loan 
 will mature, the Secretary shall, on an annual basis, 
 provide written notice to each household residing in 
 the property that informs them of --
 ``
            (i) the date of the loan maturity;
 ``
            (ii) the possible actions that may happen 
 with respect to the property upon that 
 maturity; and
 ``
            (iii) how to protect their right to 
 reside in federally assisted housing or secure 
 a voucher under 

section 542 of this Act or 
 

section 8 of the United States Housing Act of 
 1937 (42 U.S.C. 1437f) after that maturity.
 ``
        (B) Language.--Notice under this paragraph shall 
 be provided in plain English and shall be translated to 
 other languages in the case of any property that has a 
 significant number of residents who speak those other 
 languages.
 ``
            (c) Loan Restructuring.--Under the program under this section, in 
any circumstance in which the Secretary proposes a restructuring to an 
owner or an owner proposes a restructuring to the Secretary, the 
Secretary may restructure such existing housing loans, as the Secretary 
considers appropriate, for the purpose of ensuring that those projects 
have sufficient resources to preserve the projects to provide safe and 
affordable housing for low-income residents and farm laborers, by--
 ``

    (1) reducing or eliminating interest;
 ``

    (2) deferring loan payments;
 ``

    (3) subordinating, reducing, or reamortizing loan debt; 
 and
 ``

    (4) providing other financial assistance, including 
 advances, payments, and incentives (including the ability of 
 owners to obtain reasonable returns on investment) required by 
 the Secretary.
 ``
            (d) Renewal of Rental Assistance.--
 ``

    (1) In general.--When the Secretary proposes to 
 restructure a loan or agrees to the proposal of an owner to 
 restructure a loan pursuant to subsection
            (c) , the Secretary 
 shall offer to renew the rental assistance contract under 
 

section 521

    (a)

    (2) for the shorter of the term of the loan or a 
 20-year term that is subject to annual appropriations, provided 
 that the owner agrees to bring the property up to or maintain 
 the property at such standards that will ensure maintenance of 
 the property as decent, safe, and sanitary housing for the full 
 term of the rental assistance contract.
 ``

    (2) Additional rental assistance.--With respect to a 
 project described in paragraph

    (1) , if rental assistance is not 
 available for all households in the project for which the loan 
 is being restructured pursuant to subsection
            (c) , the Secretary 
 may extend such additional rental assistance to unassisted 
 households at that project as is necessary to make the project 
 safe and affordable to low-income households.
 ``

    (e) Restrictive Use Agreements.--
 ``

    (1) Requirement.--As part of the preservation and 
 revitalization agreement for a project, the Secretary shall 
 obtain a restrictive use agreement that is recorded and 
 obligates the owner to operate the project in accordance with 
 this title.
 ``

    (2) Term.--
 ``
        (A) No extension of rental assistance contract.--
 Except when the Secretary enters into a 20-year 
 extension of the rental assistance contract for a 
 project, the term of the restrictive use agreement for 
 the project shall be consistent with the term of the 
 restructured loan for the project.
 ``
        (B) Extension of rental assistance contract.--If 
 the Secretary enters into a 20-year extension of the 
 rental assistance contract for a project, the term of 
 the restrictive use agreement for the project shall be 
 for the longer of 20 years or the remaining term of the 
 loan.
 ``
            (C) Termination.--The Secretary may terminate the 
 20-year restrictive use agreement for a project before 
 the end of the term of the agreement if the 20-year 
 rental assistance contract for the project with the 
 owner is terminated at any time for reasons outside the 
 control of the owner.
 ``

    (f) Decoupling of Rental Assistance.--
 ``

    (1) Renewal of rental assistance contract.--If the 
 Secretary determines that a maturing loan for a project that 
 matures within the 4-year notification period described in 
 subsection

    (b)

    (1) cannot reasonably be restructured in 
 accordance with subsection
            (c) because it is not financially 
 feasible or the owner does not agree with the proposed 
 restructuring, and the project was operating with rental 
 assistance under 

section 521, the Secretary may renew the 
 rental assistance contract, notwithstanding any provision of 
 

section 521 that the recipient may be a borrower under 

section 514 or 515, for a term, subject to annual appropriations, of 20 
 years, provided that the owner enters into a restrictive use 
 agreement.
 ``

    (2) Additional rental assistance.--With respect to a 
 project described in paragraph

    (1) , if rental assistance is not 
 available for all households in the project, the Secretary may 
 extend such additional rental assistance to unassisted 
 households at that project as is necessary to make the project 
 safe and affordable to low-income households.
 ``

    (3) Rents.--Any agreement to extend the term of the 
 rental assistance contract under 

section 521 for a project 
 shall obligate the owner to continue to maintain the project as 
 decent, safe and sanitary housing and to operate the 
 development in accordance with this title, except that rents 
 shall be based on the lesser of--
 ``
        (A) the budget-based needs of the project; or
 ``
        (B) the operating cost adjustment factor as a 
 payment standard as provided under 

section 524 of the 
 Multifamily Assisted Housing Reform and Affordability 
 Act of 1997 (42 U.S.C. 1437 note).
 ``

    (4) Conditions for approval.--
 ``
        (A) Plan.--Before the approval of a rental 
 assistance contract authorized under this section, the 
 Secretary shall require the owner to submit to the 
 Secretary a plan that identifies financing sources and 
 a timetable for renovations and improvements determined 
 to be necessary by the Secretary to maintain and 
 preserve the project.
 ``
        (B) Automatic approval.--If a plan submitted 
 under subparagraph
        (A) is not acted upon by the 
 Secretary within 30 days of the submission, the rental 
 assistance contract is automatically approved for not 
 more than a 1-year period.
 ``

    (g) Multifamily Housing Transfer Technical Assistance.--Under the 
program under this section, the Secretary may provide grants to 
qualified nonprofit organizations and public housing agencies to 
provide technical assistance, including financial and legal services, 
to borrowers under loans under this title for multifamily housing to 
facilitate the acquisition or preservation of such multifamily housing 
properties in areas where the Secretary determines there is a risk of 
loss of affordable housing.
 ``

    (h) Transfer of Rental Assistance.--
 ``

    (1) In general.--The Secretary shall develop a process--
 ``
        (A) to support tenants residing in a rental 
 project originally financed under 

section 514, 515, or 
 516--
 ``
            (i) with a loan or loans that have 
 matured or have been prepaid; and
 ``
            (ii) the owner of which will not 
 restructure the loan or continue a rental 
 assistance contract under this section;
 ``
        (B) that expedites the ability of those tenants 
 to transfer rental assistance to another property 
 financed under 

section 514, 515, or 516, or obtain a 
 housing voucher;
 ``
            (C) that allows those tenants to pre-register to 
 transfer rental assistance; and
 ``
            (D) that provides time frames for processing 
 transfer or voucher requests for those tenants.
 ``
            (i) Administrative Expenses.--Of any amounts made available for 
the program under this section for any fiscal year, the Secretary may 
use not more than $1,000,000 for administrative expenses for carrying 
out such program.
 ``

    (j) Authorization of Appropriations.--There is authorized to be 
appropriated for the program under this section $200,000,000 for each 
of fiscal years 2026 through 2030.
 ``

    (k) Rulemaking.--
 ``

    (1) In general.--Not later than 180 days after the date 
 of enactment of the Strategy and Investment in Rural Housing 
 Preservation Act of 2025, the Secretary shall--
 ``
        (A) publish an advance notice of proposed 
 rulemaking; and
 ``
        (B) consult with appropriate stakeholders.
 ``

    (2) Interim final rule.--Not later than 1 year after the 
 date of enactment of the Strategy and Investment in Rural 
 Housing Preservation Act of 2025, the Secretary shall publish 
 an interim final rule to carry out this section.''.

SEC. 3. ELIGIBILITY FOR RURAL HOUSING VOUCHERS.

 

Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is amended 
by adding at the end the following:
 ``
            (c) Eligibility of Households in Sections 514, 515, and 516 
Projects.--The Secretary may provide rural housing vouchers under this 
section for any low-income household (including those not receiving 
rental assistance) residing for the remaining term of their lease in 
effect just prior to prepayment, in a property financed with a loan 
made or insured under 

section 514 or 515, or a grant under 

section 516, 
that has--
 ``

    (1) been prepaid without restrictions imposed by the 
 Secretary pursuant to 

section 502
            (c) (5)
        (G)
            (ii) 
            (I) ;
 ``

    (2) been foreclosed; or
 ``

    (3) matured after September 30, 2005 and the property is 
 not receiving rental assistance under 

section 545

    (f) .''.

SEC. 4. AMOUNT OF VOUCHER ASSISTANCE.

 Notwithstanding any other provision of law, in the case of any 
rural housing voucher provided pursuant to 

section 542 of the Housing 
Act of 1949 (42 U.S.C. 1490r), the amount of the monthly assistance 
payment for the household on whose behalf the assistance is provided 
shall be determined as provided in subsection

    (a) of such 

section 542.

SEC. 5. RENTAL ASSISTANCE CONTRACT AUTHORITY.

 

Section 521
            (d) of the Housing Act of 1949 (42 U.S.C. 1490a
            (d) ) is 
amended--

    (1) in paragraph

    (1) --
        (A) by redesignating subparagraphs
        (B) and
            (C) as 
 subparagraphs
            (C) and
            (D) , respectively;
        (B) by inserting after subparagraph
        (A) the 
 following:
 ``
        (B) upon request of an owner of a project 
 financed under 

section 514 or 515 or an owner who has 
 entered into a restrictive use agreement under 

section 545

    (e) , the Secretary is authorized to enter into a 
 renewal of such agreements for a period of 20 years or 
 the term of the loan, whichever is shorter, subject to 
 amounts made available in appropriations Acts;'';
            (C) in subparagraph
            (C) , as so redesignated, by 
 striking ``subparagraph
        (A) '' and inserting 
 ``subparagraphs
        (A) and
        (B) ''; and
            (D) in subparagraph
            (D) , as so redesignated, by 
 striking ``subparagraphs
        (A) and
        (B) '' and inserting 
 ``subparagraphs
        (A) ,
        (B) , and
            (C) '';

    (2) in paragraph

    (2) , by striking ``shall'' and inserting 
 ``may''; and

    (3) by adding at the end the following:
 ``

    (3) In the case of any rental assistance contract 
 authority that becomes available due to the termination of 
 assistance on behalf of an assisted tenant, the Secretary shall 
 provide the owner with a period of not less than 1 year to 
 provide that assistance on behalf of an eligible unassisted 
 tenant who will reside in the same rental project in which the 
 assisted tenant resided.''.

SEC. 6. FUNDING FOR MULTIFAMILY TECHNICAL IMPROVEMENTS.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Agriculture $50,000,000 for fiscal 
year 2026 for improving the technology of the Department of Agriculture 
used to process and service loans for multifamily housing and otherwise 
managing that housing.

    (b) Timeline.--The improvements required under subsection

    (a) shall 
be made within the 5-year period beginning upon the appropriation of 
amounts under subsection

    (a) , and those amounts shall remain available 
until the expiration of that 5-year period.

SEC. 7. PLAN FOR PRESERVING AFFORDABILITY OF RENTAL PROJECTS.

    (a) Plan.--Not later than 6 months after the date of enactment of 
this Act, the Secretary of Agriculture (in this section referred to as 
the ``Secretary'') shall submit to Congress a written plan for 
preserving the affordability for low-income families of rental projects 
for which loans were made under 

section 514 or 515 of the Housing Act 
of 1949 (42 U.S.C. 1484, 1485) and avoiding the displacement of tenant 
households, which shall--

    (1) set forth specific performance goals and measures;

    (2) set forth the specific actions and mechanisms by which 
 those goals will be achieved;

    (3) set forth specific measurements by which progress 
 towards achievement of each goal can be measured;

    (4) provide for detailed reporting on outcomes; and

    (5) include any legislative recommendations to assist in 
 achievement of the goals under the plan.

    (b) Advisory Committee.--

    (1) Establishment; 

=== purpose ===
-The Secretary shall establish 
 an advisory committee (in this section referred to as the 
 ``advisory committee'') to assist the Secretary in--
        (A) preserving properties assisted under 

section 514 or 515 of the Housing Act of 1949 (42 U.S.C. 1484, 
 1485) through the multifamily housing preservation and 
 revitalization program under 

section 545 of such Act, 
 as added by 

section 2 of this Act; and
        (B) implementing the plan required under subsection

    (a) .

    (2) Membership.--The advisory committee shall consist of 16 
 members, appointed by the Secretary, as follows:
        (A) A designee of the Rural Housing Service 
 selected by the Multifamily Housing Deputy 
 Administrator of the Rural Housing Service.
        (B) The Administrator for Rural Housing Service of 
 the Department of Agriculture.
            (C) Two representatives of for-profit developers or 
 owners of multifamily rural rental housing.
            (D) Two representatives of nonprofit developers or 
 owners of multifamily rural rental housing.
        (E) Two representatives of State housing finance 
 agencies.
        (F) Two representatives of tenants of multifamily 
 rural rental housing.
        (G) One representative of a community development 
 financial institution that is involved in preserving 
 the affordability of housing assisted under 

section 514, 515, or 516 of the Housing Act of 1949 (42 U.S.C. 
 1484, 1485, 1486).
        (H) One representative of a nonprofit organization 
 that operates nationally and has actively participated 
 in the preservation of housing assisted by the Rural 
 Housing Service by conducting research regarding, and 
 providing financing and technical assistance for, 
 preserving the affordability of that housing.
            (I) One representative of low-income housing tax 
 credit investors.
        (J) One representative of regulated financial 
 institutions that finance affordable multifamily rural 
 rental housing developments.
        (K) Two representatives from nonprofit 
 organizations representing farmworkers, including 1 
 organization representing farmworker women.

    (3) Meetings.--The advisory committee shall meet not less 
 often than once each calendar quarter.

    (4) Functions.--In providing assistance to the Secretary to 
 carry out the purpose of the advisory committee, the advisory 
 committee shall carry out the following functions:
        (A) Assisting the Rural Housing Service of the 
 Department of Agriculture to improve estimates of the 
 size, scope, and condition of the rental housing 
 portfolio of the Rural Housing Service, including the 
 time frames for maturity of mortgages and costs for 
 preserving the portfolio as affordable housing.
        (B) Reviewing policies and procedures of the Rural 
 Housing Service regarding preservation of affordable 
 rental housing financed under 

section 514, 515, 516, or 
 538 of the Housing Act of 1949 (42 U.S.C. 1484, 1485, 
 1486, 1490p-2), the Multifamily Preservation and 
 Revitalization Demonstration program, and the rental 
 assistance program and making recommendations regarding 
 improvements and modifications to those policies and 
 procedures.
            (C) Providing ongoing review of Rural Housing 
 Service program results.
            (D) Providing reports to Congress and the public on 
 meetings, recommendations, and other findings of the 
 advisory committee.

    (5) Travel costs.--Any amounts made available for 
 administrative costs of the Department of Agriculture may be 
 used for costs of travel by members of the advisory committee 
 to meetings of the advisory committee.
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