Yesterday, the House Financial Services Committee advanced two proposed bills to preserve affordable rental housing and revitalize public housing.

The Committee approved the Housing Preservation and Tenant Protection Act of 2010 (H.R. 4868), introduced by Chairman Frank (D-MA), to help stem the loss of affordable rental housing units across the country and prevent the displacement of low-income tenants.  Key provisions of H.R. 4868 include:

  • Provides 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.

H.R. 4868


The Committee also passed the Public Housing Reinvestment and Tenant Protection Act (H.R. 5814), legislation introduced by Congresswoman Maxine Waters (D-CA) to preserve and revitalize the nation’s public housing stock.  H.R. 5814 includes four major sections:

  • Title I establishes the Choice Neighborhoods Initiative.  Based on an Obama administration proposal, this initiative would help local governments, public housing authorities (PHAs), non-profit groups and other qualified entities revitalize neighborhoods and preserve affordable housing. 
  • Title II would end the loss of public housing units by requiring one-for-one replacement for any demolished or disposed units. The bill addresses concerns of housing authorities by providing a limited waiver of the one-for-one requirement and providing flexibility on the types of units that can be used to replace public housing. The bill also strengthens protections for residents, including prohibiting the use of rescreening criteria to keep otherwise qualified residents from returning to public housing units.
  • Title III provides housing authorities with the financial tools they need to rehabilitate and rebuild public housing. The bill establishes a program to provide loan guarantees for the capital fund, injecting much needed capital into the nation’s deteriorating housing stock. The bill also includes provisions to allow PHAs to finance energy efficient improvements to public housing.
  • Title IV would create job opportunities for public housing residents by establishing a training program for public housing residents to become in-home health care aides to elderly and disabled public housing residents.

H.R. 5814