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Paulsen LIHPRHA bill passes House

On July 14, 2015 the House of Representatives passed H. R. 2482, the “Preservation Enhancement and Savings Opportunity Act of 2015” under suspension of the rules. This bill was introduced by Congressman Erik Paulsen (R-MN) and would amend the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) to allow for increased distributions and refinancing opportunities for property owners.

H.R. 2482 is the latest version of legislation that the House Financial Services Committee has been considering for several years and upon which the National Preservation Working Group has provided many detailed comments. PWG members are pleased that the bill passed yesterday incorporates several important provisions sought by our members.

H.R. 2482 includes the following preservation provisions:
The owner must in compliance with the LIHPRA use agreement;
The owner must set aside appropriate reserves necessary to address planned future repairs and replacements before drawing surplus cash or residual receipts from the property;
The owner must continue to operate the property as affordable for its useful life pursuant to the use agreement;
Prior to distributing any new loan proceeds, the owner shall provide for capital repairs arising from a CNA satisfactory to a lender or bond issuer;
Rent increases for unassisted tenants will be limited to 10 percent per year.

It’s unclear who will carry the bill in the Senate or what its prospects are this session.

— Posted on 7/17/2015