Page:United States Statutes at Large Volume 101 Part 3.djvu/571

 PUBLIC LAW 100-242—FEB. 5, 1988

101 STAT. 1869

"(2) In the case of any multifamily housing project subject to subsection (a) that is not owned by the Secretary (and for which the Secretary is not mortgagee in possession), the Secretary shall require the owner of the project to carry out the requirements of paragraph (1).". (d) FINANCIAL ASSISTANCE.—Section 203 of the Housing and Community Development Amendments of 1978 is amended— (1) by redesignating subsections (d) through (g) as subsections (e) through (h), respectively; and (2) by inserting after subsection (c) the following new subsection: "(d) In carrying out the goals specified in subsection (a)(1) the Secretary shall take not less than one of the following actions: "(1) Enter into contracts under section 8 of the United States Housing Act of 1937, to the extent budget authority is available for such section 8, with owners of multifamily housing projects that are acquired by a purchaser other than the Secretary at foreclosure or after sale by the Secretary. Such contracts shall provide assistance to the project involved for a period of not less than 15 years. Such contracts shall be sufficient to assist all units in subsidized or formerly subsidized projects, and all units in other projects that are occupied by lower income families eligible for assistance under such section 8 at the time of foreclosure or sale, as the case may be, and all units that are vacant at such time (which units shall be made available for such families as soon as possible). In order to make available to families any units in subsidized or formerly subsidized projects that are occupied by persons not eligible for assistance under such section 8, but that subsequently become vacant, the contract shall also provide that when any such vacancy occurs the owner involved shall lease the available unit to a family eligible for assistance under such section 8. The Secretary shall provide such contracts at contract rents that, consistent with subsection (a), provide for the rehabilitation of such project and do not exceed the most recently adjusted fair market rents for substantially rehabilitated units published by the Secretary in the Federal Register. "(2) In accordance with the authority provided under the National Housing Act, provide purchase-money mortgages, reduce the selling price, or provide other financial assistance to the owners of multifamily housing projects that are acquired by a purchaser other than the Secretary at foreclosure, or after sale by the Secretary, on terms that will ensure that, for a period of not less than 15 years (A) the project will remain available to and affordable by low- and moderate-income persons; and (B) such persons shall pay not more than the amount payable as rent under section 3(a) of the United States Housing Act of 1937.".

12 USC I70lz-ll.

Contracts. i '<

Federal Register, publication.

(e) RIGHT OF FIRST REFUSAL.—Section 203 of the Housing and

Community Development Amendments of 1978 is amended— (1) by redesignating subsections (e) through (h) (as so redesignated by this section) as subsections (f) through (i); and (2) by inserting before such subsection (f) the following new subsection: "(e) Upon receipt of a bona fide offer to purchase a project subject State and local to subsection (a), the Secretary shall notify the local government governments. and the State housing finance agency (or other agency or agencies

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