Oregon Senators Reintroduce Legislation to Allow Use of Residual Receipts for Preservation

On February 10, Oregon’s two U.S. Senators, Ron Wyden and Jeff Merkley, introduced S. 317, the Affordable Housing Preservation and Revitalization Act of 2011. The bill, identical to stand-alone legislation the two Senators put forward in the 111th Congress (see news post from 9/16/09), would allow for the transfer of funds in a Preservation property’s Residual Receipt account to a non-profit entity acquiring the project. Currently, when such a property transfers ownership, the federal government recaptures the HUD-controlled Residual Receipt funds, which result from revenue that exceeds the amounts approved for operating expenses, reserve requirements, and distributions to property owners. Under the proposed legislation, the new owner could only use the transferred Residual Receipt account for a small number of activities, including funding rehabilitation and, to a limited degree, acquisition. Click here for further information about S. 317.

— Posted on 2/14/2011