The issue of prepaying Rural Housing Service multifamily loans has been a topic of debate on Capitol Hill since the mid-1980s. These loans are a staple for providing affordable housing in rural America, usually through mandatory low-income use restrictions. The multifamily program is commonly known as the Section 515 program. In an effort to guarantee the continued existence of affordable housing, various parties have pushed for legislation that would restrict the ability of property owners to prepay the loans, terminate low-income use restrictions and leave the affordable housing programs. After much debate and after realizing that many property owners were poised to abandon affordable housing for potentially more profitable market rate housing, Congress intervened with restrictive legislation.

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