REHABILITATION OF ASSISTED HOUSING.

SEC. 533. REHABILITATION OF ASSISTED HOUSING. (a) Rehabilitation Loans From Recaptured IRP Amounts.—Section 236(s) of the National Housing Act (12 U.S.C. 1715z–1(s)) is amended— (1) by striking the subsection designation and heading and inserting the following: “(s) Grants and Loans for Rehabilitation of Multifamily Projects.—”; (2) in paragraph (1), by inserting “and loans” after “grants”; (3) in paragraph (2)— (A) in the matter preceding subparagraph (A), by striking “capital grant assistance under this subsection” and inserting “capital assistance under this subsection under a grant or loan only”; and (B) in subparagraph (D)(i), by striking “capital grant assistance” and inserting “capital assistance under this subsection from a grant or loan (as appropriate)”; (4) in paragraph (3), by striking all of the matter that precedes subparagraph (A) and inserting the following: “(3) Eligible uses.—Amounts from a grant or loan under this subsection may be used only for projects eligible under paragraph (2) for the purposes of—”; (5) in paragraph (4)— (A) by striking the paragraph heading and inserting “Grant and Loan Agreements” and (B) by inserting “or loan” after “grant”, each place it appears; (6) in paragraph (5), by inserting “or loan” after “grant”, each place it appears; (7) in paragraph (6), by adding at the end the following new subparagraph: “(D) Loans.—In making loans under this subsection using the amounts that the Secretary has recaptured from contracts for interest reduction payments pursuant to clause (i) or (ii) of paragraph (7)(A)— “(i) the Secretary may use such recaptured amounts for costs (as such term is defined in section 502 of the Congressional Budget Act of 1974) of such loans; and “(ii) the Secretary may make loans in any fiscal year only to the extent or in such amounts that amounts are used under clause (i) to cover costs of such loans.”;113 STAT. 1120 (8) by redesignating paragraphs (5) and (6) (as amended by the preceding provisions of this subsection) as paragraphs (6) and (7); and (9) by inserting after paragraph (4) the following new paragraph: “(5) Loan terms.—A loan under this subsection— “(A) shall provide amounts for the eligible uses under paragraph (3) in a single loan disbursement of loan principal; “(B) shall be repaid, as to principal and interest, on behalf of the borrower using amounts recaptured from contracts for interest reduction payments pursuant to clause (i) or (ii) of paragraph (7)(A); “(C) shall have a term to maturity of a duration not shorter than the remaining period for which the interest reduction payments for the insured mortgage or mortgages that fund repayment of the loan would have continued after extinguishment or writedown of the mortgage (in accordance with the terms of such mortgage in effect immediately before such extinguishment or writedown); “(D) shall bear interest at a rate, as determined by the Secretary of the Treasury, that is based upon the current market yields on outstanding marketable obligations of the United States having comparable maturities; and “(E) shall involve a principal obligation of an amount not exceeding the amount that can be repaid using amounts described in subparagraph (B) over the term determined in accordance with subparagraph (C), with interest at the rate determined under subparagraph (D).”. (b) IRP Capital Grants Requirement for Extension of Low-Income Affordability Requirements.—Section 236(s) of the National Housing Act (12 U.S.C. 1715z–1(s)) is amended— (1) in paragraph (2)— (A) by redesignating subparagraphs (C) and (D), as amended by the preceding provisions of this section, as subparagraphs (D) and (E), respectively; and (B) by inserting after subparagraph (B) the following new subparagraph: “(C) the project owner enters into such binding commitments as the Secretary may require (which shall be applicable to any subsequent owner) to ensure that the owner will continue to operate the project in accordance with all low-income affordability restrictions for the project in connection with the Federal assistance for the project for a period having a duration that is not less than the period referred to in paragraph (5)(C);”; and (2) in paragraph (4)(B), by inserting “and consistent with paragraph (2)(C)” before the period at the end.