APPROVAL OF PREPAYMENT OF DEBT.

SEC. 201. APPROVAL OF PREPAYMENT OF DEBT. Subsection (a) of section 811 of the American Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended—(1) in the matter preceding paragraph (1), by inserting “, for which the Secretary’s consent to prepayment is required,” after “Affordable Housing Act)”;(2) in paragraph (1)—(A) by inserting “at least 20 years following” before “the maturity date”;(B) by inserting “project-based” before “rental assistance payments contract”;(C) by inserting “project-based” before “rental housing assistance programs”; and(D) by inserting “, or any successor project-based rental assistance program,” after “1701s))”;(3) by amending paragraph (2) to read as follows:“(2) the prepayment may involve refinancing of the loan if such refinancing results in—“(A) a lower interest rate on the principal of the loan for the project and in reductions in debt service related to such loan; or“(B) a transaction in which the project owner will address the physical needs of the project, but only if, as a result of the refinancing—“(i) the rent charges for unassisted families residing in the project do not increase or such families are provided rental assistance under a senior preservation rental assistance contract for the project pursuant to subsection (e); and“(ii) the overall cost for providing rental assistance under section 8 for the project (if any) is not increased, except, upon approval by the Secretary to—“(I) mark-up-to-market contracts pursuant to section 524(a)(3) of the Multifamily Assisted Housing Reform and Affordability Act (42 U.S.C. 1437f note), as such section is carried out by the Secretary for properties owned by nonprofit organizations; or“(II) mark-up-to-budget contracts pursuant to section 524(a)(4) of the Multifamily Assisted Housing Reform and Affordability Act (42 U.S.C. 1437f note), as such section is carried out by the Secretary for properties owned by eligible owners (as such term is defined in section 202(k) of the 124 STAT. 4080 Housing Act of 1959 (12 U.S.C. 1701q(k)); and”; and(4) by adding at the end the following:“(3) notwithstanding paragraph (2)(A), the prepayment and refinancing authorized pursuant to paragraph (2)(B) involves an increase in debt service only in the case of a refinancing of a project assisted with a loan under such section 202 carrying an interest rate of 6 percent or lower.”.