Amendments to qualification as affordable housing

Section 215 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745) is amended— (1) in subsection (a)— (A) in paragraph (1)(E), by striking all that follows purposes of this Act, and inserting the following: “except— (i) upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action— (I) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure; and (II) is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary; or (ii) where existing affordable housing is no longer financially viable due to unforeseen acts or occurrences beyond the reasonable contemplation or control of the participating jurisdiction or owner that significantly impact the financial or physical condition of the housing, as determined by the Secretary; and; and (B) by adding at the end the following: (7) Small-scale housing (A) Definition In this paragraph, the term small-scale housing means housing with not more than 4 rental units. (B) Alternative requirements Small-scale housing shall qualify as affordable housing under this title if— (i) the housing bears rents that comply with paragraph (1)(A); (ii) each unit is occupied by a household that qualifies as a low-income family; (iii) the housing is not refused for leasing to a holder of a voucher under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) because of the status of the prospective tenant as a holder of such voucher; (iv) the housing meets the requirements under paragraph (1)(E); and (v) the participating jurisdiction monitors ongoing compliance of the housing with requirements of this title in a manner consistent with the purposes of section 226(b), as determined by the Secretary.; and (2) in subsection (b)(1), by striking 95 percent and inserting 110 percent or a percentage established by the Secretary through notice, whichever is greater,.