(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
1484, 1485, or 1486 of this title.
(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
1484, 1485, or 1486 of this title 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
On an annual basis, for each property financed under section
1484, 1485, or 1486 of this title, not later than the date that is 2 years before the date that the loan will mature, the Secretary shall 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 how to secure housing voucher, 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 located in an area in which a significant number of residents speak such 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;
(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; and
(5) permanently removing a portion of the housing units from income restrictions when sustained vacancies have occurred.
(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
1490a(a)(2) of this title for a term that is the shorter of 20 years and the term of the restructured loan, subject to annual appropriations, provided that the owner agrees to bring the property up to 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 subchapter.
(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—
(i) 20 years; or
(ii) the remaining term of the loan for that project.
(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 loan maturing during the 4-year period beginning upon the provision of the notice required under subsection (b)(1) for a project 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
1490a of this title and the recipient is a borrower under section
1484 or 1485 of this title, the Secretary may renew the rental assistance contract, notwithstanding any requirement under section
1490a of this title that the recipient be a current borrower under section
1484 or 1485 of this title, for a term of 20 years, subject to annual appropriations.
(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.
(3) Rents
(A) In general
Any agreement to extend the term of the rental assistance contract under section
1490a of this title for a project shall obligate the owner to continue to maintain the project as decent, safe, and sanitary housing and to operate the development as affordable housing in a manner that meets the goals of this subchapter.
(B) Rent amounts
Subject to subparagraph (C), in setting rents, the Secretary—
(i) shall determine the maximum initial rent based on current fair market rents established under section
1437f of this title; and
(ii) may annually adjust the rent determined under clause (i) by the operating cost adjustment factor as provided under section
524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note).
(C) Higher rent
(i) In general
Subparagraph (B) shall not apply if the Secretary determines that the budget-based needs of a project require a higher rent than the rent described in subparagraph (B).
(ii) Rent
If the Secretary makes a positive determination under clause (i), the Secretary may approve a budget-based rent level for the project.
(4) Conditions for approval
Before the approval of a rental assistance contract authorized under this section, the Secretary shall require, through an annual notice in the Federal Register, 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.
(g) Multifamily housing transfer technical assistance
Under the program under this section, the Secretary may provide grants to qualified nonprofit organizations, housing cooperative corporations, and public housing agencies to provide technical assistance, including financial and legal services, to borrowers under loans under this subchapter 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) 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.
(i) Rulemaking
(1) In general
Not later than 180 days after July 11, 2026, 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 July 11, 2026, the Secretary shall publish an interim final rule to carry out this section.