Page:United States Statutes at Large Volume 101 Part 3.djvu/588

 101 STAT. 1886

PUBLIC LAW 100-242—FEB. 5, 1988 (4) The term "moderate income families or persons" means families or persons whose incomes are between 80 percent and 95 percent of median income for the area, as determined by the Secretary with adjustments for smaller and larger families, (5) The term "owner" means the current or subsequent owner or owners of eligible low income housing. (6) The term "Secretary" means the Secretary of Housing and Urban Development. (7) The term "termination of low income affordability restrictions" means any elimination or relaxation of low income affordability restrictions (other than those permitted under an approved plan of action under section 225(b)).

12 USC 1715/ note.

12 USC 1715Z note.

SEC. 234. REGULATIONS.

The Secretary shall issue final regulations to carry out this subtitle not later than 60 days after the date of the enactment of this Act. The Secretary shall provide for the regulations to take effect not later than 45 days after the date on which the regulations are issued. SEC. 235. EFFECTIVE DATE.

The requirements of this subtitle shall apply to any project that is eligible low income housing on or after November 1, 1987.

Subtitle C—Rural Rental Housing Displacement Prevention SEC. 241. PREPAYMENT AND REFINANCING PROCEDURES. 42 USC 1472. State and local governments.

Loans. Contracts.

Section 502(c) of the Housing Act of 1949 is amended by adding at the end the following new paragraphs: "(3) NOTICE OF OFFER TO PREPAY.—Not less than 30 days after receiving an offer to prepay any loan made or insured under section 514 or 515, the Secretary shall provide written notice of the offer or request to the tenants of the housing and related facilities involved, to interested nonprofit organizations, and to any appropriate State and local agencies. "(4)(A) AGREEMENT BY BORROWER TO EXTEND LOW INCOME USE.— Before accepting any offer to prepay, or requesting refinancing in accordance with subsection (b)(3) of, any loan made or insured under section 514 or 515 pursuant to a contract entered into before December 21, 1979, the Secretary shall make reasonable efforts to enter into an agreement with the borrower under which the borrower will make a binding commitment to extend the low income use of the assisted housing and related facilities involved for not less than the 20-year period beginning on the date on which the agreement is executed. "(B) ASSISTANCE AVAILABLE TO BORROWER TO EXTEND LOW INCOME

USE.—To the extent of amounts provided in appropriation Acts, the agreement under subparagraph (A) may provide for 1 or more of the following forms of assistance that the Secretary, after taking into account local market conditions, determines to be necessary to extend the low income use of the housing and related facilities involved: "(i) Increase in the rate of return on investment.

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