text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Rural Housing Preservation Act of 
  2016''.
  
  SEC. 2. AVAILABILITY OF RURAL HOUSING VOUCHERS FOR TENANTS IN PROJECTS 
                WITH MATURING LOANS.
  
      (a) In General.--Section 542 of the Housing Act of 1949 (42 U.S.C. 
  1490r) is amended by adding at the end the following new subsection:
      ``(c) Rural Vouchers for Tenants of Projects With Prepaid or 
  Maturing Loans.--
              ``(1) Authority.--Subject to the availability of amounts 
          provided in appropriation Acts and to paragraph (3), the 
          Secretary shall provide rural housing vouchers under this 
          section, in the amount provided under this section, to any low-
          income household (including those not receiving rental 
          assistance) residing in a property financed with a loan made or 
          insured under section 515 (42 U.S.C. 1485) which has been 
          prepaid, or which has matured, after September 30, 2005.
              ``(2) Administration and subsidies.--The Secretary shall, 
          to the maximum extent practicable, administer and operate such 
          vouchers with current regulations and administrative guidance 
          applicable to enhanced vouchers under section 8(t) of the 
          United States Housing Act of 1937 (42 U.S.C. 1437f(t)) and 
          administered by the Secretary of Housing and Urban Development. 
          The amount of rental assistance provided on behalf of holders 
          of such vouchers shall be the same as that provided on behalf 
          of holders of enhanced vouchers under such section 8(t).
              ``(3) Termination of assistance.--The Secretary shall 
          terminate the provision of voucher assistance pursuant to this 
          subsection, with respect to a property, if--
                      ``(A) at any time, a new loan is made or insured 
                  under section 515 for the property; and
                      ``(B) as a result of such loan, rental assistance 
                  is provided on behalf of the voucher holder in an 
                  amount comparable to the rental assistance provided on 
                  behalf of the voucher holder under the voucher 
                  program.''.
      (b) Requirement for Section 515 Projects To Accept Vouchers.--
  Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended by 
  adding at the end the following new subsection:
      ``(bb) Requirement To Accept Rural Housing Vouchers.--No owner of a 
  property financed with a loan made or insured under this section, 
  whether such loan is outstanding or fully paid, may refuse to lease an 
  available dwelling unit in the property to a household on behalf of 
  whom voucher assistance is provided under section 542 (42 U.S.C. 
  1490r), and to enter into a voucher contract respecting such unit, a 
  proximate cause of which is the status of such current or prospective 
  tenant as a holder of such voucher.''.
  
  SEC. 3. DECOUPLING RENTAL ASSISTANCE FROM MATURING RURAL HOUSING LOANS.
  
      Paragraph (2) of section 521(a) of the Housing Act of 1949 (42 
  U.S.C. 1490a(a)(2)) is amended by adding at the end the following new 
  subparagraph:
                      ``(F) Rental assistance for projects with matured 
                  loans.--
                              ``(i) Authority.--To continue to make 
                          decent, safe and sanitary housing available to 
                          low-income occupants of projects originally 
                          financed with a loan made or insured under 
                          section 515 that has matured on or after the 
                          date of the enactment of this subparagraph, and 
                          at rental rates commensurate to income as 
                          specified in subparagraph (A) of this 
                          paragraph, the Secretary may, subject to the 
                          availability of amounts provided in 
                          appropriation Acts, contract to make, make, and 
                          renew annual assistance payments pursuant to 
                          this subparagraph to the owners of such 
                          projects.
                              ``(ii) Offer.--The Secretary shall ensure 
                          that an offer to provide a contract for 
                          assistance payments pursuant to this 
                          subparagraph shall be extended to all owners of 
                          projects described in clause (i) not later than 
                          24 months before the maturation of the loan 
                          (except in the case of loans maturing after the 
                          date that is 24 months before the date of the 
                          enactment of this subparagraph).
                              ``(iii) Terms.--Each contract for 
                          assistance payments pursuant to this 
                          subparagraph shall--
                                      ``(I) have a term of 20 years and 
                                  be subject to availability of amounts 
                                  provided in annual appropriations Acts;
                                      ``(II) cover all new and existing 
                                  households residing in the project, 
                                  regardless of whether or not they were 
                                  previously assisted under the rental 
                                  assistance program authorized under 
                                  subparagraph (A);
                                      ``(III) be recorded at such local 
                                  real property recording office as is 
                                  prescribed by the State in which the 
                                  project is located;
                                      ``(IV) bind the owner of the 
                                  project and the owner's successors to 
                                  continue to operate the project in 
                                  accordance with such agreements;
                                      ``(V) require the owner (and such 
                                  successors) to agree to continue to 
                                  operate the projects as if it were 
                                  subject to an existing loan under 
                                  section 515;
                                      ``(VI) extend to residents of the 
                                  project all the rights that at the time 
                                  such contract is entered into are 
                                  extended to residents of projects 
                                  subject to an existing loan under 
                                  section 515; and
                                      ``(VII) require the owner (and such 
                                  successors) to maintain the assisted 
                                  housing as decent, safe, and sanitary 
                                  housing.
                              ``(iv) Actual market rentals.--
                                      ``(I) In general.--A contract for 
                                  assistance provided pursuant to this 
                                  subparagraph for a project shall 
                                  provide assistance to the owner based 
                                  on an initial reasonable operating 
                                  budget the rents for which do not 
                                  exceed such actual market rental rates 
                                  for the area in which the project is 
                                  located, as are established by the 
                                  Secretary.
                                      ``(II) Adjustment; renewal.--The 
                                  Secretary shall adjust the actual 
                                  market rental rates used for purposes 
                                  of this clause annually.
                              ``(v) Renewal; adjustment.--In providing 
                          assistance pursuant to this subparagraph, the 
                          Secretary shall require the owner of the 
                          project to renew the assistance provided to 
                          each household not less frequently than 
                          annually, in accordance with the provisions of 
                          subparagraph (A), and shall adjust the amount 
                          of assistance provided to a household at any 
                          other time upon a decrease in the household's 
                          monthly income of $100 or more.
                              ``(vi) Administration.--Rental assistance 
                          contracts authorized by this subparagraph 
                          shall, except as otherwise provided in this 
                          subparagraph, be administered by the Secretary 
                          in the same manner as rental assistance 
                          contracts for projects having existing loans 
                          made or insured under section 515 or existing 
                          loans and grants made under sections 514 and 
                          516.''.
  
  SEC. 4. UNIFORM STANDARDS FOR TRANSFERS OF SECTION 515 PROPERTIES USING 
                LOW-INCOME TAX CREDITS.
  
      Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended 
  by adding at the end the following new subsection:
      ``(bb) Requirements for Transfers of Properties Involving Low-
  Income Housing Tax Credits.--The Secretary shall establish, without 
  exception, uniform requirements, terms, and conditions for any sale or 
  transfer of a property financed with a loan under this section to any 
  entity, including a nonprofit organization, that is seeking to acquire 
  such property with amounts authorized under this section and any low-
  income housing tax credit under section 42 of the Internal Revenue Code 
  of 1986.''.
  
  SEC. 5. RURAL MULTIFAMILY HOUSING REVITALIZATION PROGRAM.
  
      Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended 
  by adding at the end the following new subsection:
      ``(bb) Multifamily Housing Revitalization Program.--
              ``(1) In general.--The Secretary may establish a 
          Multifamily Housing Revitalization Program for the preservation 
          and revitalization of multifamily housing projects funded with 
          loans made available pursuant to this section and sections 514 
          and 516 to ensure that such projects have sufficient resources 
          to provide safe and affordable housing for low-income residents 
          and farm laborers.
              ``(2) Options.--In carrying out paragraph (1), the 
          Secretary may--
                      ``(A) with respect to such loans--
                              ``(i) reduce or eliminate interest;
                              ``(ii) defer loan payments; and
                              ``(iii) subordinate, reduce, or reamortize 
                          loan debt; and
                      ``(B) provide other financial assistance, 
                  including--
                              ``(i) advances; and
                              ``(ii) payments and incentives (including 
                          the ability of owners to obtain reasonable 
                          returns on investment).
              ``(3) Requirements.--In exchange for assistance provided 
          pursuant to this subsection, the Secretary shall enter into 
          with the property owner a restrictive use agreement to ensure 
          that the property remains subject to low-income use 
          restrictions for an additional period of time consistent with 
          the terms of the restructuring.
              ``(4) Use of funds for rural housing vouchers.--
                      ``(A) Authority.--If the Secretary determines that 
                  additional funds for vouchers under the rural housing 
                  voucher program under section 542 (42 U.S.C. 1490r) are 
                  needed, funds for the revitalization program under this 
                  subsection may be used for such vouchers for any low-
                  income household (including those not receiving rental 
                  assistance) residing in a property financed with a loan 
                  under this section that has been prepaid after 
                  September 30, 2005.
                      ``(B) Amount.--Notwithstanding section 542, the 
                  amount of a voucher provided pursuant to this paragraph 
                  shall be the difference between comparable market rent 
                  for the unit and the tenant-paid rent for such unit.
                      ``(C) Availability.--Funds made available for 
                  vouchers pursuant to this paragraph shall be subject to 
                  the availability of annual appropriations.
                      ``(D) Administration.--The Secretary shall, to the 
                  maximum extent practicable, administer vouchers 
                  provided pursuant to this paragraph with current 
                  regulations and administrative guidance applicable to 
                  housing vouchers under section 8 of the United States 
                  Housing Act of 1937 (42 U.S.C. 1437f) administered by 
                  the Secretary of Housing and Urban Development.''.
  
  SEC. 6. REGULATIONS.
  
      The Secretary of Agriculture shall issue regulations necessary to 
  carry out the amendments made by this Act not later than the expiration 
  of the 120-day period beginning on the date of the enactment of this 
  Act.
target: Rural Housing Preservation Act of 2016 This bill amends the Housing Act of 1949 to direct the Department of Agriculture (USDA) to extend rural housing vouchers to any low-income household (including those not receiving rental assistance) residing in a property financed with a loan made or insured for housing and related facilities for elderly or other low-income persons and families which has been prepaid, or which has matured, after September 30, 2005. No owner of a property financed with such a loan, whether outstanding or fully paid, may refuse to lease an available dwelling unit in the property to a household on behalf of whom a rural housing voucher assistance is provided, and enter into a voucher contract respecting that unit, if a proximate cause of that refusal is the current or prospective tenant's status as a holder of such a voucher. USDA may contract to make, make, and renew annual assistance payments to owners of projects originally financed with such a loan that has matured on or after enactment of this bill, and at rental rates commensurate to income. USDA shall establish uniform requirements, terms, and conditions for any sale or transfer of a property financed with such a loan to any entity, including a nonprofit organization, seeking to acquire it with a similar loan and any low-income housing tax credit under the Internal Revenue Code. USDA may also establish a Multifamily Housing Revitalization Program for the preservation and revitalization of multifamily housing projects funded with such loans, as well as with loans for housing and related facilities for domestic farm labor, to ensure that those projects have sufficient resources to provide safe and affordable housing for low-income residents and farm laborers.
feat_title: Rural Housing Preservation Act of 2016