A bill to amend the National Housing Act.

Amends the National Housing Act to prohibit the Secretary of Housing and Urban Development, during any period in which a multifamily rental housing project owner is required to obtain the Secretary's approval for prepayment of the mortgage, from accepting an offer to prepay the mortgage unless: (1) there is no longer a need for rental housing for low-income housing in the area; (2) the tenants have been notified of the owner's request and have had an opportunity to comment; and (3) there are assurances that the owner will provide relocation assistance.

Directs the Secretary to give priority for additional assistance under the United States Housing Act of 1937 and the Housing and Community Development Amendments of 1978 in the case of certain low-income housing projects and facilities for elderly or handicapped families assisted under the National Housing Act, the Housing and Urban Development Act of 1965, or the Housing Act of 1959 if: (1) funds for additional assistance are available; and (2) such assistance is necessary to prevent prepayment of the mortgage.