42 USC 1490u - Housing preservation and revitalization program

U.S Code last checked for updates: Jul 31, 2026

§ 1490u.

Housing preservation and revitalization program

(a)

Establishment

(b)

Notice of maturing loans

(1)

To owners

(2)

To tenants

(A)

In general

On an annual basis, for each property financed under section 1484, 1485, or 1486 of this title, not later than the date that is 2 years before the date that the loan will mature, the Secretary shall provide written notice to each household residing in the property that informs them of—

(i)

the date of the loan maturity;

(ii)

the possible actions that may happen with respect to the property upon that maturity; and

(iii)

how to protect their right to reside in federally assisted housing, or how to secure housing voucher, after that maturity.

(B)

Language

(c)

Loan restructuring

Under the program under this section, in any circumstance in which the Secretary proposes a restructuring to an owner or an owner proposes a restructuring to the Secretary, the Secretary may restructure such existing housing loans, as the Secretary considers appropriate, for the purpose of ensuring that those projects have sufficient resources to preserve the projects to provide safe and affordable housing for low-income residents and farm laborers, by—

(1)

reducing or eliminating interest;

(2)

deferring loan payments;

(3)

subordinating, reducing, or reamortizing loan debt;

(4)

providing other financial assistance, including advances, payments, and incentives (including the ability of owners to obtain reasonable returns on investment) required by the Secretary; and

(5)

permanently removing a portion of the housing units from income restrictions when sustained vacancies have occurred.

(d)

Renewal of rental assistance

(1)

In general

(2)

Additional rental assistance

(e)

Restrictive use agreements

(1)

Requirement

(2)

Term

(A)

No extension of rental assistance contract

(B)

Extension of rental assistance contract

If the Secretary enters into a 20-year extension of the rental assistance contract for a project, the term of the restrictive use agreement for the project shall be for the longer of—

(i)

20 years; or

(ii)

the remaining term of the loan for that project.

(C)

Termination

(f)

Decoupling of rental assistance

(1)

Renewal of rental assistance contract

(2)

Additional rental assistance

(3)

Rents

(A)

In general

(B)

Rent amounts

Subject to subparagraph (C), in setting rents, the Secretary—

(i)

shall determine the maximum initial rent based on current fair market rents established under section 1437f of this title; and

(ii)

may annually adjust the rent determined under clause (i) by the operating cost adjustment factor as provided under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note).

(C)

Higher rent

(i)

In general

(ii)

Rent

(4)

Conditions for approval

(g)

Multifamily housing transfer technical assistance

(h)

Administrative expenses

(i)

Rulemaking

(1)

In general

Not later than 180 days after July 11, 2026, the Secretary shall—

(A)

publish an advance notice of proposed rulemaking; and

(B)

consult with appropriate stakeholders.

(2)

Interim final rule

(July 15, 1949, ch. 338, title V, § 545, as added Pub. L. 119–101, title V, § 502(e), July 11, 2026, 140 Stat. 919.)

cite as: 42 USC 1490u