Page:United States Statutes at Large Volume 101 Part 3.djvu/582

 101 STAT. 1880 12 USC 1715Z

PUBLIC LAW 100-242—FEB. 5, 1988

SEC. 224. INCENTIVES TO EXTEND LOW INCOME USE.

(a) AGREEMENTS BY SECRETARY.—After receiving a plan of action from an owner of eligible low income housing, the Secretary may enter into such agreements as are necessary to satisfy the criteria for approval under section 225. (b) PERMISSIBLE INCENTIVES.—Such agreements may include one or more of the following incentives that the Secretary, after taking into account local market conditions, determines to be necessary to achieve the purposes of this title: (1) An increase in the allowable distribution or other measures to increase the rate of return on investment. (2) Revisions to the method of calculating equity. (3) Increased access to residual receipts accounts or excess replacement reserves. (4) Provision of insurance for a second mortgage under section 241(f) of the National Housing Act. (5) An increase in the rents permitted under an existing contract under section 8 of the United States Housing Act of 1937, or (subject to the availability of amounts provided in appropriation Acts) additional assistance under such section 8 or an extension of any project-based assistance attached to the housing. (6) Financing of capital improvements under section 201 of the Housing and Community Development Amendments of 1978. (7) Other actions, authorized in other provisions of law, to facilitate a transfer or sale of the project to a qualified nonprofit organization, limited equity tenant cooperative, public agency, or other entity acceptable to the Secretary. (8) Other incentives authorized in law. 12 USC 1715/

SEC. 225. CRITERIA FOR APPROVAL OF PLAN OF ACTION. (a) PLAN OF ACTION INVOLVING TERMINATION OF LOW INCOME AFFORDABILITY RESTRICTIONS.—The Secretary may approve a plan of

Safety. Health and medical care.

Minorities. State and local governments.

action that involves termination of the low income affordability restrictions only upon a written finding that— (1) implementation of the plan of action will not materially increase economic hardship for current tenants or involuntarily displace current tenants (except for good cause) where comparable and affordable housing is not readily available; and (2)(A) the Supply of vacant, comparable housing is sufficient to ensure that such prepayment will not materially affect— ^) ^j^^ availability of decent, safe, and sanitary housing affordable to lower income and very low-income families or persons in the area that the housing could reasonably be expected to serve; (ii) the ability of lower income and very low-income families or persons to find affordable, decent, safe, and sanitary housing near employment opportunities; or (iii) the housing opportunities of minorities in the community within which the housing is located; or (B) the plan has been approved by the appropriate State agency and any appropriate local government agency for the jurisdiction within which the housing is located as being in accordance with a State strategy approved by the Secretary under section 226,

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