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Live at the Forum: Learn about H.R. 4868 - New Legislation to Preserve Affordable Housing

Join us on Tuesday, April 20 from 1 - 3:00 p.m. Eastern (10:00 a.m. - 12:00 p.m. Pacific) for the next "Live at the Forum," during which Toby Halliday of the National Housing Trust will provide an overview of the Housing Preservation and Tenant Protection Act (H.R. 4868), a look ahead to the Committee markup expected next month, and answers to your questions about how the Act will help stabilize housing for some of the nation’s poorest households.

  • Hear about the legislation: The two-part event begins at 1:00 p.m. Eastern (10:00 a.m. Pacific) with a 30-minute conference call, where details about the legislation will be presented. The call-in number is (712) 432-1001 and the access code is 452746624#.
  • Interact with the speaker: Immediately following the call, Toby Halliday will be online to answer your questions.  All questions should be posted to this thread, and you are welcome to post at any time leading up to or during the event. 

Please note that you will need to refresh your browser periodically during the live event to view new questions and responses.  Use the numbers at the bottom of the page to navigate to additional questions and answers.


About the legislation

The Housing Preservation and Tenant Protection Act (H.R. 4868), introduced by House Financial Services Committee Chairman Barney Frank, would make significant improvements in federal law to make it easier to preserve federally assisted rental housing that is at risk of loss or conversion and provide new protections to the people living in this housing.  The bill was formally introduced in March and its major goals include (1) Providing resources and incentives to prevent the further loss of affordable housing units; (2) Preventing the displacement of disabled, elderly and other low-income tenants; (3) Preserving rural housing; and (4) Establishing a national database to further preservation.  For additional background, please see the attachment or  visit the National Housing Trust web site.

Thank you to everyone who was able to join us this afternoon.  If you missed it, an audio recording of the call is available.

Tags: live at the forum

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Attachments:

Replies to This Discussion

How does HR4868's provision to convert RAP/Rent Sup contracts into Section 8 project-based contracts compare with HUD's Transforming Rental Assistance initiative for these same types of projects? Which would offer better protection for the tenants and financial incentives for Owners?
HR 4868 allows direct conversion to project-based Section 8, while TRA would provide for conversion to HUD proposed new rental assistance model. This model is intended to provide the same long-term affordability, renewal options, tenant protections, and reasonable rents as Section 8, but the details are not yet clear. Theoretically they are equivalent, subject to the details of TRA to be forthcoming from HUD.
Posted on behalf of a coalition of real estate groups --

Please see the attached Fact Sheet and Industry Letter, which were developed by a coalition of real estate organizations and highlight several issues of concern in the proposed legislation, H.R. 4868. Specific concerns include language related to the Federal First Right of Refusal (Section 107), Pre-emption of Federal Law (Section 108d), and Resident Access to Building Information (Section 304).
Attachments:
Can you tell me if the bill proposes risk retention or risk sharing by lenders for any of its financing plans or programs?

Doug Moritz
Mortgage Bankers Association
Doug- Section 112 includes a provision relating to risk-sharing FHA mortgages. You might want to look at this section and see if it answers your question.
Toby, Can you more fully describe the Exchange provision added under Section 106?

Dan Burke
Preservation of Affordable Housing
Section 106 would create a voluntary program for owners facing contract expiration or mortgage maturing within 5 years. Over a 12-month period, the owner would agree to negotiate in good faith only with potential preservation purchasers and could enjoy certain HUD incentives, such as less stringent oversight of the property during the exchange period. Owners are not required to accept any offer, but would need to repay any incentives received if they do not transfer the property within the exchange period. Further information is available in the Section-by-section summary (see link above).
You mentioned Section 506 would provide incentives to preservation-minded buyers - what specifically is being contemplated?

Thank you.
I believe you may be referring to Section 106, which is described above. Section 506 extends incentives for nonprofit preservation purchasers of properties that were restructured under the Mark to Market program.
With respect to Section 106/107, how will HUD identify and qualify preservation-minded owners?

Also, generally speaking, is it anticipated that this bill will result in more funding authority for HUD to use for preservation transactions, or just more flexibility to use currently available funds?

Brian Dowling
Community Development Trust
Although the bill has different incentives and requirements in different places, a preservation purchaser is generally one that agrees to accept long-term resident income limits and rent restrictions and agrees to continue to operate the property as affordable housing. The bill creates new authority for preservation grants and loans and for HUD to operate the program under Section 107. These provisions generally authorize "such sums as necessary," with the actual annual funding to be determined by the appropriations process.
One of the concerns would be the need to review and revise regulations in order to be consistent across all programs.

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