Untitled section

(a) For fiscal years 2026 through 2028, upon request from the owner, the Secretary of Housing and Urban Development (Secretary) may forgive or restructure the terms of any indebtedness relating to any remaining principal and interest under financial assistance made available under section 201 of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z–1a) (Flex Sub loan). (b) The Secretary may only forgive or restructure loans under this section for properties with— (1) 200 or fewer assisted units; (2) a Flex Sub loan with an unpaid principal balance of $2,000,000 or less; (3) a score of 80 or higher on the most recent REAC inspection; and (4) a most recent management and occupancy review score of above average or superior. (c) The Secretary may set such terms and conditions as the Secretary determines are appropriate for forgiveness or restructuring under this section, including: (1) Different maturity dates or interest rate terms; (2) Extension of affordability use agreements; and (3) Other measures to ensure the long-term stability of operations at the property. (d) There is hereby appropriated $2,000,000, to remain available until September 30, 2029, to carry out the purposes of this section, in addition to amounts otherwise available for such purposes.