Page:United States Statutes at Large Volume 102 Part 4.djvu/300

 102 STAT. 3270

PUBLIC LAW 100-628—NOV. 7, 1988

such preference, except that not more than 10 percent (or such higher percentage determined by the Secretary to be necessary to ensure that public housing agencies can assist families in accordance with subsection (u)(2) or determined by the Secretary to be appropriate for other good cause) of the families who initially receive assistance in any 1-year period (or such shorter period selected by the public housing agency before the beginning of its first full year subject to this sentence) may be families who do not qualify for such preference.".

Subtitle B—Preservation of Low Income Housing SEC. 1021. NOTICE OF INTENT.

Section 222 of the Housing and Community Development Act of 1987 (12 U.S.C. 17151 note) is amended in the last sentence by striking "notice or intent" and inserting "notice of intent". SEC. 1022. PLAN OF ACTION.

(a) PROVISION OF INFORMATION.—Section 223(a) of the Housing and Community Development Act of 1987 (12 U.S.C. 17151 note) is amended by inserting before the period at the end of the first sentence the following: ", and any relevant market area and demographic information that the Secretary has custody of and that the owner may use in preparing the plan". (b) CONTENTS OF PLAN.—Section 223 of the Housing and Community Development Act of 1987 (12 U.S.C. 17151 note) is amended by adding at the end the following new subsection: "(d) AUTHORITY TO LIMIT CONTENTS OF PLAN.—The Secretary shall limit the amount of appraisal, market area, and demographic information required under this section in the case of a plan of action requesting incentives.". SEC. 1023. INCENTIVES TO EXTEND LOW INCOME USE.

Contracts.

Section 224(b) of the Housing and Community Development Act of 1987 (12 U.S.C. 17151 note) is amended in the matter preceding paragraph (1) by striking "Such agreements" and inserting the following: "Agreements entered into under subsection (a) that by modifications to the existing regulatory agreement or mortgage extend the low income affordability restrictions through the term of the mortgage or, in the case of the prepayment of a mortgage, by a recorded instrument impose low income affordability restrictions (including the obligations specified in the regulatory agreement) through a period equivalent to the term of the original mortgage". SEC. 1024. CRITERIA FOR APPROVAL OF PLAN OF ACTION.

Section 225(a)(1) of the Housing and Community Development Act of 1987 (12 U.S.C. 17151 note) is amended— (1) by inserting after "economic hardship for current tenants" the following: "(and will not in any event result in (A) a monthly rental payment by a current tenant that exceeds 30 percent of the monthly adjusted income of the tenant or an increase in the monthly rental payment in any year that exceeds 10 percent (whichever is lower), or (B) in the case of a current tenant who already pays more than such percentage, an increase in the monthly rental payment in any year that ex-

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