Page:United States Statutes at Large Volume 104 Part 5.djvu/846

 104 STAT. 4168 PUBLIC LAW 101-625—NOV. 28, 1990 under section 8 is available for use by each otherwise qualified tenant in that or another property. (3) RELOCATION ASSISTANCE. — The recipient shall also inform each such tenant that if the tenant chooses to move, the recipient will pay relocation assistance in accordance with the approved homeownership program. 42 USC 12875. SEC. 425. OTHER PROGRAM REQUIREMENTS. (a) PREFERENCES.— In selecting eligible families for homeownership, the recipient shall give a first preference to otherwise qualified current tenants and a second preference to otherwise qualified eligible families who have completed participation in an economic self-sufficiency program specified by the Secretary. (b) COST LIMITATIONS.— The Secretary may establish cost limitations on eligible activities under this subtitle, subject to the provisions of this subtitle. (c) USE OF PROCEEDS FROM SALES TO ELIGIBLE FAMIUES.— The entity that transfers ownership interests in, or shares representing, units to eligible families, or another entity specified in the approved application, shall use the proceeds, if any, from the initial sale for costs of the homeownership program, including operating expenses, improvements to the project, business opportunities for low-income families, supportive services related to the homeownership program, additional homeownership opportunities, and other activities approved by the Secretary. (d) RESTRICTIONS ON RESALE BY HOMEOWNERS.— (1) IN GENERAL. — (A) TRANSFER PERMITTED. —A homeowner under a homeownership program may transfer the homeowner's ownership interest in, or shares representing, the unit, except that a homeownership program may establish restrictions on the resale of unite under the program. (B) RIGHT TO PURCHASE.— Where a resident management corporation, resident council, or cooperative has jurisdiction over the unit, the corporation, council, or cooperative shall have the right to purchase the ownership interest in, or shares representing, the unit from the homeowner for the amount specified in a firm contract between the homeowner and a prospective buyer. If such an entity does not have jurisdiction over the unit or electe not to purchase and if the prospective buyer is not a low-income family, the public housing agency or the implementation grant recipient shall have the right to purchase the ownership interest in, or shares representing, the unit for the same amount. (C) PROMISSORY NOTE REQUIRED. —The homeowner shall execute a promissory note equal to the difference between the market value and the purchase price, payable to the public housing agency or other entity designated in the homeownership plan, together with a mortgage securing the obligation of the note. (2) 6 YEARS OR LESS. —In the case of a transfer within 6 years of the acquisition under the program, the homeownership program shall provide for appropriate restrictions to assure that an eligible family may not receive any undue profit. The plan shall provide for limiting the family's consideration for ite interest in the property to the total of— (A) the contribution to equity paid by the family;

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