Page:United States Statutes at Large Volume 101 Part 3.djvu/591

 PUBLIC LAW 100-242—FEB. 5, 1988

101 STAT. 1889

Community Development Act of 1987, whichever occurs later) a 15month period expires during which no budget authority is available to carry out this paragraph. For purposes of this subparagraph, the Secretary shall allocate budget authority under this paragraph in the order in which offers to prepay, or request to refinance, are made. "(G) EXCEPTION.—This paragraph shall not apply to any offer to Loans. prepay, or any request to refinance in accordance with subsection (b)(3), any loan made or insured under section 514 or 515 pursuant to a contract entered into before December 21, 1979, if— "(i) the borrower enters into an agreement with the Secretary that obligates the borrower (and successors in interest thereof)— "(I) to utilize the assisted housing and related facilities for the purposes specified in section 514 or 515, as the case may be, for a period determined by the Secretary (but not less than the period described in paragraph (1)(B) calculated from the date on which the loan is made or insured); and "(II) upon termination of the period described in paragraph (1)(B), to offer to sell the assisted housing and related facilities to a qualified nonprofit organization or public agency in accordance with this paragraph; or "(ii) the Secretary determines that housing opportunities of minorities will not be materially affected as a result of the prepayment or refinancing, and that— "(I) the borrower (and any successor in interest thereof) are obligated to ensure that tenants of the housing and related facilities financed with the loan will not be displaced due to a change in the use of the housing, or to an increase in rental or other charges, as a result of the prepayment or refinancing; or "(II) there is an adequate supply of safe, decent, and affordable rental housing within the market area of the housing and related facilities and sufficient actions have been taken to ensure that the rental housing will be made available to each tenant upon displacement. "(H) FUNDING.— "(i) BUDGET LIMITATION.—Not more than 5,000 dwelling units

may be transferred under this paragraph in any fiscal year, and the budget authority that may be provided under this paragraph for any fiscal year may not exceed the amounts required to carry out this paragraph with respect to such number. "(ii) REIMBURSEMENT OF RURAL HOUSING INSURANCE FUND.—

There are authorized to be appropriated to the Rural Housing Insurance Fund such sums as may be necessary to reimburse the Fund for financial assistance provided under this paragraph, paragraph (4), and section 517(j)(7). "(I) DEFINITION.—For purposes of this paragraph, the term 'nonprofit organization' means any private organization— "(i) no part of the net earnings of which inures to the benefit of any member, founder, contributor, or individual; and "(ii) that is approved by the Secretary as to financial responsibility. "(J) REGULATIONS.—Notwithstanding section 534, the Secretary shall issue final regulations to carry out this paragraph not later than 60 days after the date of the enactment of the Housing and Community Development Act of 1987. The Secretary shall provide

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