Multifamily Housing Restructuring and Affordability Act of 1997

TABLE OF CONTENTS:

Title I: FHA-Insured Multifamily Housing Mortgage and

Housing Assistance Restructuring

Subtitle A: Restructuring of Assistance

Subtitle B: Office of Multifamily Housing Assistance

Restructuring

Subtitle C: Contracts Expiring After Termination of

Program

Title II: Miscellaneous Provisions

Title III: Enforcement Provisions

Subtitle A: FHA Single Family and Multifamily Housing

Subtitle B: FHA Multifamily Provisions

Multifamily Housing Restructuring and Affordability Act of 1997 - Title I: FHA-Insured Multifamily Housing Mortgage and Housing Assistance Restructuring - Subtitle A: Restructuring of Assistance - Requires the Director (Director) of the Office of Multifamily Housing Assistance Restructuring (established by this Act) to enter into mortgage and rental assistance portfolio restructuring agreements with participating multifamily housing administrative entities (entities) in order to: (1) reduce expiring section 8 contract costs; (2) address troubled projects; and (3) correct management and ownership problems.

(Sec. 112) Requires the Director to develop mortgage restructuring and rental assistance sufficiency plans (plan) for the entities of eligible multifamily housing projects with expiring contracts. Sets forth plan components.

(Sec. 113) Requires the Director to enter into contracts with entities under approved plans for section 8 contract renewals with long term owner affordability commitments.

(Sec. 114) Exempts specified projects from restructuring requirements and permits contract renewals at existing or budget based rent levels. Prohibits restructuring for projects: (1) whose owners have engaged in patterns of managerial or financial mismanagement; or (2) that are in such poor condition as to be not cost effective to renew.

(Sec. 115) Authorizes plans to provide for: (1) full or partial claim payment; (2) debt refinancing; (3) mortgage insurance; (4) credit enhancement; (5) third party compensation; (6) project account use; (7) rehabilitation needs; and (8) mortgage restructuring.

(Sec. 116) Requires: (1) contracts to provide for long-term owner compliance; (2) entity compliance monitoring; and (3) specified reviews by the Director and the General Accounting Office (GAO).

(Sec. 120) Amends the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 to terminate a specified multihousing demonstration program upon implementation of the restructuring program under this Act. Continues program funding until such termination.

(Sec. 121) Amends the National Housing Act to authorize the Director to make a one time, nondefault partial payment of an existing multifamily housing mortgage.

Amends the United States Housing Act of 1937 to provide for the reuse of recaptured budget authority from contracts terminated under this Act.

Subtitle B: Office of Multifamily Housing Assistance Restructuring - Establishes within the Department of Housing and Urban Development the Office (Office) of Multifamily Housing Assistance Restructuring. Authorizes appropriations. Terminates the Office as of a specified date.

Subtitle C: Contracts Expiring After Termination of Program - Directs the Secretary of Housing and Urban Development to provide tenant based section 8 assistance with respect to contracts expiring after the Office's termination.

Title II: Miscellaneous Provisions - Amends the National Housing Act to authorize the Office to make rehabilitation grants for specified insured projects.

(Sec. 202) Amends the Housing and Community Development Act of 1992 with respect to the housing finance agency multifamily housing finance pilot program.

(Sec. 203) Authorizes the Secretary to convert direct loan elderly projects to project rental assistance contracts. Provides for related cancellation of debt and section 8 contracts.

(Sec. 204) Authorizes the Secretary, upon owner request, to provide rent limitations for qualified multifamily housing projects receiving section 8 project based assistance.

(Sec. 205) Requires a GAO report on section 8 multifamily rental assistance.

Title III: Enforcement Provisions - Subtitle A: FHA Single Family and Multifamily Housing - Amends the National Housing Act to authorize the Mortgage Review Board to immediately suspend a mortgage under specified conditions.

(Sec. 312) Extends (and increases) equity skimming penalties to 1- to 4-family residences.

(Sec. 313) Amends the National Housing Act to expand the scope of civil money penalties for mortgagees, lenders, and other Federal Housing Administration program participants.

Subtitle B: FHA Multifamily Provisions - Amends the National Housing Act to extend certain multifamily mortgagor civil money penalties (and such penalties' scope) to general partners of a partnership mortgagor, or officers or directors of corporate mortgagors.

(Sec. 322) Amends the United States Housing Act of 1937 to establish civil money penalties for specified section 8 violations by owners or other liable parties.

(Sec. 323) Amends the Housing and Community Development Act of 1987 to extend the double damages remedy for recovery of assets to specified insured mortgage agreements under the Housing Act of 1959 and the Housing and Community Development Act of 1992.