Page:United States Statutes at Large Volume 104 Part 5.djvu/946

 104 STAT. 4268 PUBLIC LAW 101-625—NOV. 28, 1990 "(A) the number of initial owners that are very lowincome, lower income, or moderate-income persons at initial occupancy meet standards required or approved by the Secretary; "(B) occupancy charges payable by the owners meet requirements established by the Secretary; "(C) the aggregate incomes of initial and subsequent owners and other sources of funds for the project are sufficient to permit occupancy charges to cover the full operating costs of the housing and any debt service; and "(D) each initial owner occupies the unit it acquires. "(4) 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, may use 50 percent of the proceeds, if any, from the initial saile for costs of the homeownership program, including improvements to the project, operating and replacement reserves for the project, additional homeownership opportunities in the project, and other project-related activities approved by the Secretary. The remaining 50 percent of such proceeds shall be returned to the Secretary for use under section 220, subject to availability under appropriations Acts. Such entity shall keep, and make available to the Secretary, all records necessary to calculate accurately payments due the Secretary under this paragraph. "(5) RESTRICTIONS ON RESALE BY HOMEOWNERS.— "(A) IN GENERAL. — "(i) 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 units under the program. " (ii) 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. "(iii) PROMISSORY NOTE REQUIRED. — The homeowner shall execute a promissory note equal to the difference, if any, between the market value and the purchase price, payable to the Secretary, together with a mortgage securing the obligation of the note. "(B) 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 its interest in the property to the total of— "(i) the contribution to equity paid by the family; "(ii) the value, as determined by such means as the Secretary shall determine through regulation, of any

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