Strategy and Investment in Rural Housing Preservation Act of 2023

This bill establishes a permanent rural housing preservation and revitalization program to preserve and revitalize multifamily rental housing projects financed under specific sections of the Housing Act of 1949. It also expands eligibility for rural housing vouchers, authorizes funding for technical improvements, and requires a plan and advisory committee for preserving affordable rental projects.

Sec. 2, Permanent establishment of housing preservation and revitalization program: This section creates a new program under the Housing Act of 1949 for preserving and revitalizing multifamily rental housing projects financed under section 515 or both sections 514 and 516. The Secretary must annually notify owners of maturing loans about options and financial incentives, and notify tenants at least two years before loan maturity about possible actions and their rights. The Secretary may restructure loans by reducing interest, deferring payments, or providing other assistance. When restructuring, the Secretary must offer to renew rental assistance contracts for 20-year terms, subject to annual appropriations, if the owner maintains the property. The Secretary must obtain restrictive use agreements obligating owners to operate projects under the title. If a loan cannot be restructured, the Secretary may renew rental assistance contracts for 20 years with a restrictive use agreement. The Secretary may provide grants for technical assistance to facilitate acquisition of multifamily housing properties at risk of loss of affordability. Tenants may transfer rental assistance to another project within 18 months before loan maturation or prepayment. Up to $1,000,000 per fiscal year may be used for administrative expenses. $200,000,000 is authorized for each of fiscal years 2024 through 2028. The Secretary must publish an advance notice of proposed rulemaking within 180 days and an interim final rule within one year.

Sec. 3, Eligibility for rural housing vouchers: This section amends the Housing Act of 1949 to allow the Secretary to provide rural housing vouchers to low-income households residing in properties financed under sections 514, 515, or 516 that have been prepaid without restrictions, foreclosed, or matured after September 30, 2005, and not receiving rental assistance under section 545(f). Priority is given to projects owned by nonprofit organizations or public agencies.

Sec. 4, Amount of voucher assistance: This section specifies that the monthly assistance payment for any rural housing voucher provided under section 542 of the Housing Act of 1949 shall be determined as provided in subsection (a) of that section.

Sec. 5, Rental assistance contract authority: This section amends section 521(d) of the Housing Act of 1949 to authorize the Secretary, upon request of an owner of a project financed under section 514 or 515 or an owner with a restrictive use agreement under section 545(e), to renew rental assistance agreements for 20 years or the loan term, whichever is shorter, subject to appropriations. It also changes the Secretary's authority from mandatory to discretionary for certain renewals.

Sec. 6, Funding for multifamily technical improvements: This section authorizes $50,000,000 for fiscal year 2024 to the Secretary of Agriculture for improving technology used to process loans for multifamily housing and managing that housing. Improvements must be made within five years of appropriation, and funds remain available until that period expires.

Sec. 7, Plan for preserving affordability of rental projects: This section requires the Secretary of Agriculture to submit to Congress within six months a written plan for preserving affordability of rental projects under sections 514 or 515 and avoiding tenant displacement. The plan must include performance goals, actions, measurements, reporting, and legislative recommendations. It also establishes an advisory committee of 16 members to assist in preserving properties and implementing the plan. The committee includes representatives from various stakeholders and must meet quarterly. Its functions include improving estimates of the rental housing portfolio, reviewing policies, providing ongoing review of program results, and reporting to Congress and the public. Travel costs for committee members may be paid from administrative funds.