Rental Housing Production and Rehabilitation Act of 1983

Rental Housing Production and Rehabilitation Act of 1983 - Authorizes the Secretary of Housing and Urban Development to provide financial assistance for State and local governments to use to stimulate the construction or rehabilitation of rental or cooperative housing for persons without other reasonable and affordable housing alternatives.

Requires local government approval of any application for assistance to a project before a State may provide such assistance. Allows a local government to apply directly to the Secretary for such assistance, but prohibits a local government from receiving assistance under this Act for any project from both the Secretary and a State.

Provides that such assistance shall only be available for projects located in areas experiencing a severe shortage of decent rental housing opportunities for persons with no reasonable and affordable housing alternatives. Directs the Secretary to promulgate minimum standards for determining areas eligible for assistance. Sets forth criteria to be used by the Secretary in selecting projects to receive assistance. Directs the Secretary to seek a reasonable distribution of assistance among eligible areas in different geographic regions, among newly constructed, substantially rehabilitated, and moderately rehabilitated projects, among States and local governments, and between metropolitan and nonmetropolitan areas.

Limits the amount of assistance provided to the minimum amount necessary to provide decent, modest, rental or cooperative housing units, twenty percent of which are affordable for persons whose incomes do not exceed 80 percent of the area median income.

Includes among conditions for receiving assistance the requirements that: (1) a project owner agree to provide 20 percent of assisted units for occupancy by such low-income persons, to pass on to tenants any reduction in debt service payments resulting from such assistance, not to discriminate against prospective tenants who are receiving other housing assistance, and not to convert project units to condominium or cooperative ownership not eligible for such assistance for 20 years; and (2) the project be newly constructed or substantially or moderately rehabilitated, contain five or more units, and be used predominantly for residential purposes. Provides for the repayment of assistance plus interest if the owner fails to carry out his or her agreements.

Limits the rent charged for the assisted units set aside for low-income persons.

Grants obligations issued to finance projects assisted under this Act the same tax-exempt status as obligations issued by a public housing agency in connection with low- income housing projects. Authorizes Federal Housing Administration insurance of the mortgages of assisted projects.

Requires that any assistance contract require that workers employed in the development and operation of a project be paid not less than the wages prevailing in the locality.

Authorizes appropriations.