“That of the total amount provided under this head, $350,000,000 shall be available for use in conjunction with properties that are eligible for assistance under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) [see Short Title note above] or the
Emergency Low Income Housing Preservation Act of 1987 (ELIHPA) [see Codification note set out preceding this section], of which $75,000,000 shall be available for obligation until
March 1, 1997 for projects (1) that are subject to a repayment or settlement agreement that was executed between the
owner and the
Secretary prior to
September 1, 1995; (2) whose submissions were delayed as a result of their location in areas that were designated as a Federal disaster area in a Presidential Disaster Declaration; or (3) whose processing was, in fact or in practical effect, suspended, deferred, or interrupted for a period of twelve months or more because of differing interpretations, by the
Secretary and an
owner or by the
Secretary and a State or local rent regulatory agency, concerning the timing of filing eligibility or the effect of a presumptively applicable State or local rent control law or regulation on the determination of
preservation value under section 213 of LIHPRHA, as amended [
12 U.S.C. 4103], if the
owner of such project filed notice of intent to extend the
low-income affordability restrictions of the housing, or transfer to a
qualified purchaser who would extend such restrictions, on or before
November 1, 1993; and of which, up to $100,000,000 may be used for rental assistance to prevent displacement of families residing in projects whose
owners prepay their mortgages; and the balance of which shall be available from the effective date of this Act [
Sept. 26, 1996] for sales to preferred
priority purchasers: Provided further, That with the exception of projects described in clauses (1), (2), or (3) of the preceding proviso, the
Secretary shall, notwithstanding any other provision of law, suspend further processing of preservation applications which have not heretofore received approval of a plan of action:
Provided further, That $150,000,000 of amounts recaptured from interest reduction payment contracts for section 236 [
12 U.S.C. 1715z–1] projects whose
owners prepay their mortgages during fiscal year 1997 shall be rescinded:
Provided further, That an
owner of
eligible low-income housing may prepay the mortgage or request voluntary termination of a mortgage insurance contract, so long as said
owner agrees not to raise rents for sixty days after such prepayment:
Provided further, That such developments have been determined to have preservation equity at least equal to the lesser of $5,000 per unit or $500,000 per project or the equivalent of eight times the most recently published monthly fair market rent for the area in which the project is located as the appropriate unit size for all of the units in the eligible project:
Provided further, That the
Secretary may modify the regulatory agreement to permit
owners and
priority purchasers to retain rental income in excess of the basic rental charge in projects assisted under section 236 of the
National Housing Act, for the purpose of preserving the low- and moderate-income character of the housing:
Provided further, That
eligible low-income housing shall include properties meeting the requirements of this paragraph with mortgages that are held by a State agency as a result of a sale by the
Secretary without insurance, which immediately before the sale would have been
eligible low-income housing under LIHPRHA:
Provided further, That notwithstanding any other provision of law, subject to the availability of appropriated funds, each low-income family, and moderate-income family who is elderly or disabled or is residing in a low-vacancy area, residing in the housing on the date of prepayment or voluntary termination, and whose rent, as a result of a rent increase occurring no later than one year after the date of the prepayment, exceeds 30 percent of adjusted income, shall be offered tenant-based assistance in accordance with section 8 [
42 U.S.C. 1437f] or any successor program, under which the family shall pay no less for rent than it paid on such date:
Provided further, That any family receiving tenant-based assistance under the preceding proviso may elect (1) to remain in the unit of the housing and if the rent exceeds the fair market rent or payment standard, as applicable, the rent shall be deemed to be the applicable standard, so long as the administering public housing agency finds that the rent is reasonable in comparison with rents charged for comparable unassisted housing units in the market or (2) to move from the housing and the rent will be subject to the fair market rent of the payment standard, as applicable, under existing program rules and procedures:
Provided further, That the tenant-based assistance made available under the preceding two provisos are in lieu of benefits provided in subsections [sic] 223(b), (c), and (d) of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 [
12 U.S.C. 4113(b), (c), (d)]:
Provided further, That any sales shall be funded using the capital grant available under section 220(d)(3)(A) of LIHPRHA [
12 U.S.C. 4110(d)(3)(A)]:
Provided further, That any extensions shall be funded using a non-interest-bearing capital (direct) loan by the
Secretary not in excess of the amount of the cost of rehabilitation approved in the plan of action plus 65 percent of the property’s preservation equity and under such other terms and conditions as the
Secretary may prescribe:
Provided further, That any capital grant shall be limited to seven times, and any capital loan limited to six times, the annual fair market rent for the project, as determined using the fair market rent for fiscal year 1997 for the area in which the project is located, using the appropriate apartment sizes and mix in the eligible project, except where, upon the request of a
priority purchaser, the
Secretary determines that a greater amount is necessary and appropriate to preserve low-income housing:
Provided further, That section 241(f) of the
National Housing Act [
12 U.S.C. 1715z–6(f)] is repealed and insurance under such section shall not be offered as an incentive under LIHPRHA and ELIHPA:
Provided further, That up to $10,000,000 of the amount of $350,000,000 made available by a preceding proviso in this paragraph may be used at the discretion of the
Secretary to reimburse
owners of eligible properties for which plans of action were submitted prior to the effective date of this Act [
Sept. 26, 1996], but were not executed for lack of available funds, with such reimbursement available only for documented costs directly applicable to the preparation of the plan of action as determined by the
Secretary, and shall be made available on terms and conditions to be established by the
Secretary: Provided further, That, notwithstanding any other provision of law, a
priority purchaser may utilize assistance under the
HOME Investment Partnerships Act [
42 U.S.C. 12721 et seq.] or the Low Income Housing Tax Credit [see
26 U.S.C. 42]:
Provided further, That projects with approved plans of action which exceed the limitations on eligibility for funding imposed by this Act may submit revised plans of action which conform to these limitations by
March 1, 1997, and retain the priority for funding otherwise applicable from the original date of approval of their plan of action, subject to securing any additional necessary funding commitments by
August 1, 1997.”
“Of the total amount provided under this head, $624,000,000, plus amounts recaptured from interest reduction payment contracts for section 236 [
12 U.S.C. 1715z–1] projects whose
owners prepay their mortgages during fiscal year 1996 (which amounts shall be transferred and merged with this account), shall be for use in conjunction with properties that are eligible for assistance under the Low Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) [see Short Title note above] or the Emergency Low-Income Housing Preservation Act of 1987 (ELIHPA) [see Codification note set out preceding this section]:
Provided, That prior to
August 15, 1996, funding to carry out plans of action shall be limited to sales of projects to non-profit organizations, tenant-sponsored organizations, and other
priority purchasers: Provided further, That of the amount made available by this paragraph, up to $10,000,000 shall be available for preservation technical assistance grants pursuant to section 253 of the
Housing and Community Development Act of 1987 [
12 U.S.C. 4143], as amended:
Provided further, That with respect to amounts made available by this paragraph, after
August 15, 1996, if the
Secretary determines that the demand for funding may exceed amounts available for such funding, the
Secretary (1) may determine priorities for distributing available funds, including giving priority funding to tenants displaced due to mortgage prepayment and to projects that have not yet been funded but which have approved plans of action; and (2) may impose a temporary moratorium on applications by potential recipients of such funding:
Provided further, That an
owner of
eligible low-income housing may prepay the mortgage or request voluntary termination of a mortgage insurance contract, so long as said
owner agrees not to raise rents for sixty days after such prepayment:
Provided further, That an
owner of
eligible low-income housing who has not timely filed a second notice under
section 216(d) [
12 U.S.C. 4106(d)] prior to the effective date of this Act [
Apr. 26, 1996] may file such notice by
April 15, 1996:
Provided further, That such developments have been determined to have preservation equity at least equal to the lesser of $5,000 per unit or $500,000 per project or the equivalent of eight times the most recently published fair market rent for the area in which the project is located as the appropriate unit size for all of the units in the eligible project:
Provided further, That the
Secretary may modify the regulatory agreement to permit
owners and
priority purchasers to retain rental income in excess of the basic rental charge in projects assisted under section 236 of the
National Housing Act [
12 U.S.C. 1715z–1], for the purpose of preserving the low and moderate income character of the housing:
Provided further, That the
Secretary may give priority to funding and processing the following projects provided that the funding is obligated not later than
September 15, 1996: (1) projects with approved plans of action to retain the housing that file a modified plan of action no later than
August 15, 1996 to transfer the housing; (2) projects with approved plans of action that are subject to a repayment or settlement agreement that was executed between the
owner and the
Secretary prior to
September 1, 1995; (3) projects for which submissions were delayed as a result of their location in areas that were designated as a Federal disaster area in a Presidential Disaster Declaration; and (4) projects whose processing was, in fact, or in practical effect, suspended, deferred, or interrupted for a period of nine months or more because of differing interpretations, by the
Secretary and an
owner concerning the time of the ability of an uninsured section 236 [
12 U.S.C. 1715z–1] property to prepay or by the
Secretary and a State or local rent regulatory agency, concerning the effect of a presumptively applicable State or local rent control law or regulation on the determination of
preservation value under section 213 of LIHPRHA, as amended [
12 U.S.C. 4103], if the
owner of such project filed notice of intent to extend the
low-income affordability restrictions of the housing, or transfer to a
qualified purchaser who would extend such restrictions, on or before
November 1, 1993:
Provided further, That
eligible low-income housing shall include properties meeting the requirements of this paragraph with mortgages that are held by a State agency as a result of a sale by the
Secretary without insurance, which immediately before the sale would have been
eligible low-income housing under LIHPRHA:
Provided further, That notwithstanding any other provision of law, subject to the availability of appropriated funds, each unassisted low-income family residing in the housing on the date of prepayment or voluntary termination, and whose rent, as a result of a rent increase occurring no later than one year after the date of the prepayment, exceeds 30 percent of adjusted income, shall be offered tenant-based assistance in accordance with section 8 [
42 U.S.C. 1437f] or any successor program, under which the family shall pay no less for rent than it paid on such date:
Provided further, That any family receiving tenant-based assistance under the preceding proviso may elect (1) to remain in the unit of the housing and if the rent exceeds the fair market rent or payment standard, as applicable, the rent shall be deemed to be the applicable standard, so long as the administering public housing agency finds that the rent is reasonable in comparison with rents charged for comparable unassisted housing units in the market or (2) to move from the housing and the rent will be subject to the fair market rent of the payment standard, as applicable, under existing program rules and procedures:
Provided further, That rents and rent increases for tenants of projects for which plans of action are funded under section 220(d)(3)(B) of LIHPRHA [
12 U.S.C. 4110(d)(3)(B)] shall be governed in accordance with the requirements of the program under which the first mortgage is insured or made (sections 236 or 221(d)(3) BMIR [
12 U.S.C. 1715z–1, 4111(d)(3)], as appropriate):
Provided further, That the immediately foregoing proviso shall apply hereafter to projects for which plans of action are to be funded under such section 220(d)(3)(B) [
12 U.S.C. 4110(d)(3)(B)], and shall apply to any project that has been funded under such section starting one year after the date that such project was funded:
Provided further, That up to $10,000,000 of the amount made available by this paragraph may be used at the discretion of the
Secretary to reimburse
owners of eligible properties for which plans of action were submitted prior to the effective date of this Act [
Apr. 26, 1996], but were not executed for lack of available funds, with such reimbursement available only for documented costs directly applicable to the preparation of the plan of action as determined by the
Secretary, and shall be made available on terms and conditions to be established by the
Secretary: Provided further, That, notwithstanding any other provision of law, effective
October 1, 1996, the
Secretary shall suspend further processing of preservation applications which do not have approved plans of action.”
