[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4146 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4146
To amend the Low-Income Housing Preservation and Resident Homeownership
Act of 1990.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 4, 2014
Mr. Paulsen introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Low-Income Housing Preservation and Resident Homeownership
Act of 1990.
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 ``Preservation Enhancement and Savings
Opportunity Act of 2014''.
SEC. 2. DISTRIBUTIONS AND RESIDUAL RECEIPTS.
Section 222 of the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4112) is amended by adding at the
end the following new subsection:
``(e) Distribution and Residual Receipts.--
``(1) Authority.--After the date of the enactment of the
Preservation Enhancement and Savings Opportunity Act of 2014,
the owner of a property subject to a plan of action or use
agreement pursuant to this section shall be entitled to
distribute--
``(A) annually, all surplus cash generated by the
property; and
``(B) upon request made to the Secretary and
notwithstanding any conflicting provision in such use
agreement; any funds accumulated in a residual receipts
account, but only if the owner is in material
compliance with such use agreement.
``(2) Operation of property.--An owner that distributes any
amounts pursuant to paragraph (1) shall--
``(A) continue to operate the property in
accordance with the affordability provisions of the use
agreement for the property for the remaining useful
life of the property;
``(B) as required by the plan of action for the
property, continue to renew or extend any project-based
rental assistance contract for a term of not less than
20 years; and
``(C) if the owner has an existing multi-year
project-based rental assistance contract for less than
20 years, have the option to extend the contract to a
20-year term.''.
SEC. 3. FUTURE REFINANCINGS.
Section 214 of the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4104) is amended by adding at the
end the following new subsection:
``(c) Future Financing.--Neither this section, nor any plan of
action or use agreement implementing this section, shall restrict an
owner from obtaining a new loan or refinancing an existing loan secured
by the project, or from distributing the proceeds of such a loan;
except that, in conjunction with such refinancing--
``(1) the owner shall provide for adequate rehabilitation
pursuant to a capital needs assessment to ensure long-term
sustainability of the property satisfactory to the lender or
bond issuance agency;
``(2) any resulting budget-based rent increase shall
include debt service on the new financing, commercially
reasonable debt service coverage, and replacement reserves as
required by the lender; and
``(3) rent increases for units not covered by a project-
based rental subsidy contract or tenant-based rental subsidy
shall be limited to 10 percent.''.
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