MULTIFAMILY HOUSING DISPOSITION PARTNERSHIP.

SEC. 184. MULTIFAMILY HOUSING DISPOSITION PARTNERSHIP. (a) Establishment of Demonstration Program.— The Secretary of Housing and Urban Development (referred to in this section as the “Secretary”) shall carry out a program to demonstrate the effectiveness of disposing of distressed multifamily housing projects owned by the Department of Housing and Urban Development through a partnership with State housing finance agencies. The demonstration program may be carried out with not more than 4 State housing finance agencies and shall be designed to determine the feasibility of entering into similar relationships with other State housing finance agencies. (b) Requirements of Demonstration Program.— (1) Opportunity to participate in sale.— Not less than 30 days before offering to sell any multifamily housing project that is located in a State participating in the demonstration program and that is subject to section 204 of the Housing and Community Development Amendments of 1978, the Secretary shall— (A) notify the State housing finance agency of the plan of the Secretary to sell the project; and (B) provide the State housing finance agency with the option to provide the long-term financing for the sale of the project through the co-insurance program of the Secretary, if the project complies with the State laws applicable to the State housing finance agency. 101 STAT. 1873 (2) Terms of participation.— If the State housing finance agency agrees to participate in the sale of a project under this section, the terms of the sale shall be as follows: (A) The State housing finance agency shall provide a loan to the purchaser of the property. (B) The mortgage securing the loan shall be insured by the Secretary and the State housing finance agency under paragraph (3) or (4) of section 221(d) of the National Housing Act. (C) The terms and conditions of the loan shall be consistent with the terms and conditions of the sale. (3) Cooperative agreement.— Not later than the expiration of the 3-month period beginning on the date of the enactment of this Act, the Secretary shall enter into cooperative agreements with State housing finance agencies to carry out the demonstration program under this section. (c) Termination of Demonstration Program.— (1) In general.— Except as provided in paragraph (2), the demonstration program under this section shall terminate upon the expiration of the 3-year period beginning on the date of the enactment of this Act. (2) Continuation of program.— (A) The Secretary may continue the demonstration program under this section after the termination date established in paragraph (1) for such additional period as the Secretary determines to be appropriate. (B) The Secretary shall continue the demonstration program under this section with respect to any project for which the Secretary notifies the State housing finance agency under subsection (b)(1)(A) before the termination date established in paragraph (1) or under subparagraph (A). (d) Report to Congress.— Not later than 6 months after the termination date established in subsection (c)(1), the Secretary shall submit to the Congress a report evaluating the effectiveness of the demonstration program under this section as a national model for the disposition of distressed multifamily housing projects owned by the Department of Housing and Urban Development.