Hon. Michael G. Oxley: “I rise in support of H.R. 2589--the Mark-to-Market Extension Act of 2001. The Committee on Financial Services approved…”

“I rise in support of H.R. 2589--the Mark-to-Market Extension Act of 2001. The Committee on Financial Services approved unanimously this legislation on July 25, 2001 and reported [House Report 107-196] to the House on September 5, 2001. The Senate Committee on Banking, Housing and Urban Affairs considered a similar bill on August 1, 2001. H.R. 2589 will extend authorization of the Office of Multifamily Housing Assistance Restructuring, also known as OMHAR, which is currently a separate office within the Department of Housing and Urban Development (HUD). The authority would extend by three years the office through FY 2004 and extend the Secretary's authority to provide mark-to-market services through FY 2006. We believe that HUD will be provided the special tools necessary to restructure developments that receive both project-based rental section 8 payments and Federal Housing Administration mortgage insurance. As I understand, the original Act was enacted in 1997 and was designed to curtail exploding section 8 rental costs for units renting at far above the prevailing market rates. Without this Act, section 8 contract renewals could top $7 billion dollars and account for as much as one-third of HUD's future budgets. Because the authorization for this office sunsets September 30th of this year, it is necessary that this bill pass the House today.”