Sec. 203. Leveraging of other assistance
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Subsection
(d)of section 9 of the United States Housing Act of 1937 ( 42 U.S.C. 1437g(d) ) is amended by adding at the end the following new paragraph: The Secretary may, upon such terms and conditions as the Secretary may prescribe, guarantee and make commitments to guarantee notes or other obligations issued by public housing agencies for the purposes of financing— the rehabilitation of public housing owned by the agency; the modernization, through energy efficiency improvements, of public housing units owned by the agency; or the construction, rehabilitation, purchase, or conversion of units to replace public housing units that are demolished or disposed of pursuant to section 18 or converted pursuant to section 22 or 33. Notes or other obligations guaranteed pursuant to this paragraph shall be in such form and denominations, have such maturities, and be subject to such conditions as may be prescribed by regulations issued by the Secretary. The term of such loan guarantee shall not exceed 20 years. A guarantee made pursuant to this paragraph shall guarantee repayment of 95 percent of the unpaid principal and interest due on the notes or other obligations guaranteed. Funds allocated to an issuer pursuant to this subsection or subsection
(e)may be used for payment of principal and interest due (including such servicing, underwriting, or other costs as may be specified in regulations of the Secretary) on notes or other obligations guaranteed pursuant to this paragraph. To ensure the repayment of notes or other obligations guaranteed under this paragraph and charges incurred under this paragraph and as a condition for receiving such guarantees, the Secretary shall require the issuer of any such note or obligation to— enter into a contract, in a form acceptable to the Secretary, for repayment of notes or other obligations so guaranteed; and pledge any grant or allocation for which the issuer is or may become eligible under this subsection or subsection
(e)for the repayment of notes or other obligations so guaranteed. The Secretary may, notwithstanding any other provision of this Act, apply grants pledged pursuant to clause (i)(II) of this subparagraph to any repayments due the United States as a result of such guarantees. The full faith and credit of the United States is pledged to the payment of all guarantees made under this paragraph. Any such guarantee made by the Secretary shall be conclusive evidence of the eligibility of the obligations for such guarantee with respect to principal and interest, and the validity of any such guarantee so made shall be incontestable in the hands of a holder of the guaranteed obligations. Subject only to the absence of qualified requests for guarantees and to the availability of amounts to cover the costs (as such term is defined in section 502 of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661a )), as are provided in advance in appropriation Acts, the Secretary shall enter into commitments to guarantee notes and obligations under this paragraph having an aggregate principal amount of $500,000,000 each for fiscal years 2018, 2019, and 2020. . Section 9 of the United States Housing Act of 1937 ( 42 U.S.C. 1437g ) is amended by adding at the end the following new subsection: A public housing agency that utilizes tax credits under section 42 of the Internal Revenue Code of 1986 for rental housing units that are currently or formerly assisted under subsection
(d)or
(e)shall ensure, with respect to such units, that— all significant tenant and applicants rights are continued and enforceable; the agency retains its interest in the property to the maximum extent possible, including through the use of a ground lease when feasible; the agency maintains an active role in property management decisions and operations of such housing sufficient to guarantee access to relevant information and public accountability; long-term affordability protections are enforced, including such protections applicable in the event of default or foreclosure; and affected tenants are provided information about the proposal for use of the property, before submission of the proposal to the Secretary, and an opportunity to comment on such proposal, pursuant to processes and requirements that are substantially similar to the requirements for tenant notice and comment under section 18. .
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