TROUBLED MULTIFAMILY HOUSING.

SEC. 405. TROUBLED MULTIFAMILY HOUSING. (a) Mandatory Elements.—Section 201(d) of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z–1a(d)) is amended— (1) in paragraph (5), by striking “and”; (2) in paragraph (6), by striking the period and inserting a semicolon; and (3) by adding at the end the following new paragraphs: “(7) all reasonable attempts have been made to take all appropriate actions and provide suitable housing for project residents; (8) The project has a feasible plan to involve the residents in project decisions; (9) ) the affirmative fair housing marketing plan meets applicable requirements; and (10) the owner certifies that it will comply with various equal opportunity statutes.”. (b) Selection Criteria.— (1) Repeal of section 201(k)(4).—Section 201(k)(4) of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z—la(k)(4)) is repealed. (2) New criteria.—Section 201 of the Housing and Community Development Amendments of 1978 is amended by adding at the end the following new subsection: “(n) (1) The Secretary shall award assistance under this section to eligible projects on the basis of the following selection criteria: “(A) The extent to which the project presents an imminent threat to the life, health, and safety of project residents. “(B) The extent to which the project is financially troubled. “(C) The extent of physical improvements needed by the project as evidenced by the comprehensive needs assessment 106 STAT. 3777submitted in accordance with title IV of the Housing and Community Development Act of 1992. “(D) The extent to which there is evidence that there will be significant opportunities for residents (including a resident council or resident management corporation, as appropriate) to be involved in management of the project (except that this paragraph shall have no application to projects that are owned as cooperatives). “(E) The extent to which there is evidence that the project owner has provided competent management and complied with all regulatory and administrative instructions (including such instructions with respect to the comprehensive servicing of multifamily projects as the Secretary may issue). “(F) Such other criteria as the Secretary may specify by regulation or in a Federal Register notice of fund availability. “(2) Eligible projects that have federally insured mortgages in force are to be selected for award of assistance under this section before any other eligible project.”. (c) Low-Income Affordability Restrictions.—Section 201(1)(2)(D) of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z–1a(1)(2)(D)) is amended by adding at the end the following: “The Secretary may require owners receiving assistance for capital improvements under this section to retain the housing as housing affordable for very low-income families or persons, low-income families or persons and moderate-income families or persons for the remaining useful life of the housing. For purposes of this section, the term ‘remaining useful life’ means, with respect to housing assisted under this section, the period during which the physical characteristics of the housing remain in a condition suitable for occupancy, assuming normal maintenance and repairs are made and major systems and capital components are replaced as becomes necessary”. (d) Exclusivity of Assistance.—Section 201 of the Housing and Community Development Amendments of 1978, as amended by this section, is further amended by adding at the end the following new subsection: “(o) Projects receiving assistance under this section are not eligible for prepayment incentives under the Emergency Low- Income Housing Preservation Act of 1987 or the Low-Income Housing Preservation and Resident Homeownership Act of 1990. Projects receiving financial assistance under such Acts are not eligible for assistance under this section.”. (e) Owner Contributions.—Section 201(k)(2) of the Housing and Community Development Amendments of 1978 is amended— (1) in subparagraph (B), by striking “and”; (2) in subparagraph (C), by striking the period and inserting and”; and (3) by adding at the end the following new subparagraph: “(D) the Secretary shall give owners credit for advances made to the project during a 3-year period prior to the application for assistance”. (f) Coordination of Assistance.—Section 201 of the Housing and Community Development Amendments of 1978, as amended by this section, is further amended by adding at the end the following new subsection: (p) The Secretary shall coordinate the allocation of assistance under this section with assistance made available under section 106 STAT. 37788(v) of the United States Housing Act of 1937 and section 203 of this Act to enhance the cost effectiveness of the Federal response to troubled multifamily housing.”.