Page:United States Statutes at Large Volume 104 Part 5.djvu/934

 104 STAT. 4256 PUBLIC LAW 101-625—NOV. 28, 1990 the plan under this subtitle. The owner shall submit any revision to the Secretary and to the tenants of the housing, 12 USC 4108. "SEC. 218. PREPAYMENT AND VOLUNTARY TERMINATION. "(a) APPROVAL.— The Secretary may approve a plein of action that provides for termination of the low-income affordability restrictions through prepayment of the mortgage or voluntary termination of the mortgage insurance contract only upon a written finding that— "(1) implementation of the plan of action will not— "(A) materially increase economic hardship for current tenants, and will not in any event result in (i) a monthly rental payment by any current tensint 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 (ii) 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 exceeds the increase in the Consumer Price Index or 10 percent (whichever is lower); or "(B) involuntarily displace current tensints (except for good cause) where comparable and affordable housing is not readily available determined without regard to the availability of Federal housing assistance that would address any such hardship or involuntary displacement; and "(2) the supply of vacant, comparable housing is sufficient to ensure that such prepayment will not materially affect— "(A) the availability of decent, safe, and sanitary housing affordable to low-income and very low-income families or persons in the area that the housing could reasonably be expected to serve; (B) the ability of low-income and very low-income families or persons to find affordable, decent, safe, and sanitary housing near employment opportunities; or "(C) the housing opportunities of minorities in the community within which the housing is located. "(b) DISAPPROVAL. —If the Secretary determines a plan of action to prepay a mortgage or terminate an insurance contract fails to meet the requirements of subsection (a), the Secretary shall disapprove the plan, the notice of intent filed under section 212 by such owner shall not be effective for purposes of this subtitle, and the owner may, in order to receive incentives under this subtitle, file a new notice of intent under such section. 12 USC 4109. "SEC, 219. INCENTIVES TO EXTEND LOW-INCOME USE. "(a) AGREEMENTS BY SECRETARY.— After approving a plan of action from an owner of eligible low-income housing that includes the owner's plan to extend the low-income affordability restrictions of the housing, the Secretary shall, subject to the availability of appropriations for such purpose, enter into such agreements as are necessary to enable the owner to receive the annual authorized return for the housing determined under section 214(a), pay debt service on the federally-assisted mortgage covering the housing, pay debt service on any loan for rehabilitation of the housing, and meet project operating expenses and establish adequate reserves. The Secretary shall take into account the Federal cost limits under section 215(a) for the housing when providing incentives under subsections (b)(2) and (3) of this section.

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