Page:United States Statutes at Large Volume 101 Part 3.djvu/589

 PUBLIC LAW 100-242—FEB. 5, 1988

101 STAT. 1887

"(ii) Reduction of the interest rate on the loan through the provision of interest credits under section 521(a)(l)(B). "(iii) Additional rental assistance, or an increase in assistance provided under existing contracts, under section 521(a)(2) or under section 8 of the United States Housing Act of 1937. "(iv) An equity loan to the borrower under paragraphs (7) and (8) of section 515(b). "(v) Incremental rental assisteince in connection with loans under clauses (ii) and (iv) to the extent necessary to avoid increases in the rental payments of current tenants not receiving rental assistance under section 521(a)(2) or under section 8 of the United States Housing Act of 1937. "(C) APPROVAL OF ASSISTANCE.—The Secretary may approve assistance under subparagraph (B) only if the Secretary determines that the combination of assistance provided— "(i) is necessary to provide a fair return on the investment of the borrower; and "(ii) is the least costly alternative for the Federal Government that is consistent with carrying out the purposes of this subsection. "(5)(A) OFFER TO SELL TO NONPROFIT ORGANIZATIONS AND PUBLIC

Contracts.

AGENCIES.—

"(i) IN GENERAL.—If the Secretary determines after a reasonable period that an agreement will not be entered into with a borrower under paragraph (4), the Secretary shall require the borrower (except as provided in subparagraph (G)) to offer to sell the assisted housing and related facilities involved to any qualified nonprofit organization or public agency at a fair market value determined by 2 independent appraisers, one of whom shall be selected by the Secretary and one of whom shall be selected by the borrower. If the 2 appraisers fail to agree on the fair market value, the Secretary and the borrower shall jointly select a third appraiser, whose appraisal shall be binding on the Secretary and the borrower. "(ii) PERIOD FOR WHICH REQUIREMENT APPLICABLE.—If, upon the expiration of 180 days after an offer is made to sell housing and related facilities under clause (i), no qualified nonprofit organization or public agency has made a bona fide offer to purchase, the Secretary may accept the offer to prepay, or may request refinancing in accordance with subsection (b)(3) of, the loan. This clause shall apply only when funds are available for purposes of carrying out a transfer under this paragraph. "(B) QUALIFIED N O N P R OF I T ORGANIZATIONS AND PUBLIC AGENCIES.— "(i) LOCAL NONPROFIT ORGANIZATION OR PUBLIC AGENCY.—A

local nonprofit organization or public agency may purchase housing and related facilities under this paragraph only if— "(I) the organization or agency is determined by the Contracts. Secretary to be capable of managing the housing and related facilities (either directly or through a contract) for the remaining useful life of the housing and related facilities; and "(II) the organization or agency has entered into an agreement that obligates it (and successors in interest thereof) to maintain the housing and related facilities as affordable for very low-income families or persons and low income families or persons for the remaining useful life of the housing and related facilities.

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