Page:United States Statutes at Large Volume 104 Part 5.djvu/951

 PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4273 "(11) The term 'resident council' means any incorporated nonprofit organization or association that— "(A) is representative of the resident of the housing; "(B) adopts written procedures providing for the election of officers on a regular basis; and "(C) has a democratically elected governing board, elected by the residents of the housing. "SEC. 230. NOTICE TO TENANTS. 12 USC 4120. "Where a provision of this subtitle requires that information or material be given to tenants of the housing, the requirement may be met by (1) posting a copy of the information or material in readily accessible locations within each affected building, or posting notices in each such location describing the information or material and specifying a location, as convenient to the tenants as is reasonably practical, where a copy may be examined, and (2) supplying a copy of the information or material to a representative of the tenants. "SEC. 231. DEFINITIONS OF QUALIFIED AND PRIORITY PURCHASER AND 12 USC 4121. RELATED PARTY RULE. "(a) PRIORITY PURCHASER.—The term 'priority purchaser' means (A) a resident council organized to acquire the housing in accordance with a resident homeownership program that meets the requirements of section 231; and (B) any nonprofit organization or State or local agency that agrees to maintain low-income affordability restrictions for the remaining useful life of the housing (as determined under section 222(d)). "(b) QUALIFIED PURCHASER.—The term 'qualified purchaser' means any entity that agrees to maintain low-income affordability restrictions for the remaining useful life of the housing (as determined under section 222(d)), and includes for-profit entities and priority purchasers. "(c) RELATED PARTIES.—Except as provided in subsection (d), the terms 'qualified purchaser' and 'priority purchaser' do not include any entity that, either directly or indirectly, is wholly or partially owned or controlled by the owner of the housing being transferred under this subtitle, is under whole or partial common control with such owner, or has any financial interest in such owner or in which such owner has any finsmcial interest. The Secretary shall issue any regulations appropriate to implement the preceding sentence. "(d) MANAGEMENT EXCEPTION, — A qualified purchaser shall not be precluded from retaining as a property management entity a company that is owned or controlled by the selling owner or a principal thereof if retention of the management company is neither a condition of sale nor part of consideration paid for sale and the property management contract is negotiated by the qualified purchaser on an arm's length basis. "SEC. 232. PREEMPTION OF STATE AND LOCAL LAWS. 12 USC 4122. "(a) IN GENERAL.— No State or political subdivision of a State may establish, continue in effect, or enforce any law or regulation that— "(1) restricts or inhibits the prepa3anent of any mortgage described in section 229(1) (or the voluntary termination of any insurance contract pursuant to section 229 of the National Housing Act) on eligible low income housing;

�