House Financial Services Committee approves H.R. 4868

Published on July 28, 2010

The House Financial Services Committee today approved H.R. 4868, the Housing Preservation and Tenant Protection Act of 2010.

According to a press release from the Committee on Financial Services, this comprehensive affordable housing legislation, introduced by Chairman Barney Frank (D-MA), helps to stem the loss of affordable rental housing units across the country and prevent the displacement of low-income tenants, many of who are elderly or disabled.

The release goes on to list key provisions of this legislation, including:

• -Provide resources and incentives to prevent the further loss of affordable housing units

• -Provides grants and loans to for-profit and non-profit housing sponsors to help ensure the property is recapitalized and kept affordable.

• -Establishes a voluntary Preservation Exchange Program to encourage owners to sell properties to purchasers who will keep the housing affordable.

• -Establishes a first right of refusal that provides state housing agencies with an opportunity to purchase a property from an owner who wishes to sell their property.  Significantly, the bill does not require an owner to sell their property or prevent them from obtaining fair market value.

• -Allows owners to request project-based assistance in lieu of enhanced vouchers, which serves to help preserve the long-term affordability of the project, assist with capital for rehabilitation, and ensure that tenants are not displaced.

• -Allows owners to receive budget based rent increases, thus ensuring that the properties are adequately maintained and encouraging owners to renew Section 8 contracts.