SenateS. 5500119th Congress
Affordable Housing Preservation and Protection Act of 2026
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5500 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 5500
To preserve and protect multifamily housing properties assisted by the
Secretary of Housing and Urban Development.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 24, 2026
Ms. Blunt Rochester introduced the following bill; which was read twice
and referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To preserve and protect multifamily housing properties assisted by the
Secretary of Housing and Urban Development.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Affordable Housing Preservation and
Protection Act of 2026''.
SEC. 2. REVITALIZATION AND PRESERVATION OF DISTRESSED MULTIFAMILY
PROPERTIES.
(a) Definitions.--In this section:
(1) HUD-approved purchaser.--The term ``HUD-approved
purchaser'' means a purchaser that is approved by the
Department of Housing and Urban Development.
(2) Multifamily housing project.--The term ``multifamily
housing project'' means a project consisting of five or more
dwelling units assisted or approved to receive assistance or a
transfer of assistance, insured, or with a loan held by the
Secretary or a State or State agency in part or in whole
pursuant to--
(A) section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f);
(B) section 202 of the Housing Act of 1959 (12
U.S.C. 1701q);
(C) section 202 of the Housing Act of 1959, as such
section was in effect on the day before the date of
enactment of the Cranston-Gonzalez National Affordable
Housing Act (Public Law 101-625; 104 Stat. 4079);
(D) section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013);
(E) section 236 of the National Housing Act (12
U.S.C. 1715z-1); or
(F) a First Component or Second Component contract
converted to project-based rental assistance or
project-based voucher assistance in accordance with the
matter under the heading ``rental assistance
demonstration'' under the heading ``Management and
Administration'' under the heading ``DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT'' in title II of division
C of the Consolidated and Further Continuing
Appropriations Act, 2012 (42 U.S.C. 1437f note; Public
Law 112-55).
(3) Necessary physical improvements.--The term ``necessary
physical improvements'' means new construction or capital
improvements to an existing multifamily housing project that
the Secretary determines are necessary to address the
deficiencies, including accessibility deficiencies, or that
rise to such a level that delaying physical improvements to the
project would be detrimental to the longevity of the project as
suitable housing for occupancy.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Authority.--To such extent or in such amounts as provided in
appropriations Acts, the Secretary may offer capital assistance under
this section to owners, sponsors, or HUD-approved purchasers of
eligible multifamily housing projects for the purpose of ensuring the
long-term preservation of decent, safe, and sanitary affordable
housing.
(c) Eligible Costs.--The Secretary may use funds under this section
for--
(1) the cost of providing direct loans, which may be
forgivable, and the costs of modifying such loans, to owners,
sponsors, or HUD-approved purchasers of distressed multifamily
housing projects for the purpose of making necessary physical
improvements, including to subsidize gross obligations for the
principal amount of such loans, subject to the terms and
conditions in subsection (d), to fund projects that improve
physical conditions; and
(2) administering the implementation of this section,
including--
(A) the cost of contracts or cooperative agreements
to support implementation;
(B) costs related to outreach and consultation with
residents of distressed multifamily housing projects
and other community stakeholders; and
(C) the cost of carrying out subsection (e).
(d) Loan Terms and Conditions.--
(1) Eligibility.--Owners, sponsors, or HUD-approved
purchasers of multifamily housing projects who meet each of the
following requirements shall be eligible for loan assistance
under this section:
(A) The multifamily housing project, including any
project from which assistance has been approved to be
transferred has deficiencies, including safety or
accessibility deficiencies, that cause the project to
be at risk of physical obsolescence or economic non-
viability.
(B) The actual rents received by the owner,
sponsor, or HUD-approved purchaser of the distressed
property would not adequately sustain the debt needed
to make necessary physical improvements.
(C) The owner, sponsor, or HUD-approved purchaser
agrees to extend or establish an affordable housing use
agreement for 30 years and agrees to accept a renewal
of a rental assistance contract in any year in which a
renewal is offered by the Secretary that for which the
terms are consistent with section 515 of the
Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note).
(2) Use of loan funds.--Each recipient of loan assistance
under this section may only use such loan assistance for
eligible uses, as determined by the Secretary, to result in
necessary physical improvements.
(3) Loan availability.--The Secretary shall only provide
loan assistance to an owner, sponsor, or HUD-approved purchaser
of a multifamily housing project when such assistance,
considered with other financial resources available to the
owner, sponsor, or HUD-approved purchaser, is needed to make
the necessary physical improvements.
(4) Interest rates and length.--Loans provided under this
section shall bear interest at 1 percent, and at origination
shall have a repayment period coterminous with the
affordability period described in paragraph (1)(D), with the
frequency and amount of repayments to be determined by
requirements established by the Secretary.
(5) Loan modifications or forgiveness.--With respect to
loans provided under this section, the Secretary may take any
of the following actions if the Secretary determines that doing
so will preserve affordability of the project:
(A) Waive any due on sale or due on refinancing
restriction.
(B) Consent to the terms of new debt to which the
loans may be subordinate, even if such new debt would
impact the repayment of the loan.
(C) Extend the term of the loan.
(D) Forgive the loan in whole or in part.
(6) Matching contribution.--
(A) In general.--Except as provided in subparagraph
(B), each recipient of loan assistance under this
section shall secure at least 20 percent of the total
cost needed to make the necessary physical improvements
from non-Federal sources.
(B) Exception.--If the Secretary determine that an
applicant is unable to secure the required matching
contribution despite having made commercially
reasonable efforts to secure such matching resources,
the Secretary may provide for--
(i) a reduced contribution below 20
percent; or
(ii) an exemption to the matching
contribution requirement.
(e) Multifamily Housing Projects Insured by the Secretary.--In the
case of any property with respect to which assistance is provided under
this section that has a mortgage held or insured by the Secretary, the
Secretary may use funds available under this section as necessary to
pay for the costs of modifying such loan, which shall include costs
paid to issuers approved by the Government National Mortgage
Association related to modifying the loan.
(f) Implementation.--
(1) In general.--The Secretary shall take steps to ensure
the effective implementation of this section, including
ensuring--
(A) timely execution of rehabilitation activities
funded by assistance under this section;
(B) ongoing owner compliance with contract or
program requirements; and
(C) outreach to and consultation with residents of
distressed properties.
(2) Requirements.--The Secretary shall have the authority
to establish by notice any requirements that the Secretary
determines are necessary for timely and effective
implementation of the program and expenditure of funds
appropriated, which requirements shall take effect upon
issuance.
(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section such sums as
may be necessary.
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