Page:United States Statutes at Large Volume 105 Part 2.djvu/828

 105 STAT. 1780 PUBLIC LAW 102-233—DEC. 12, 1991 writing that the family intends to occupy the property for at least 12 months.", (b) RECAPTURE OF PROFITS FROM RESALE.—Section 21A(c)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(2)) is amended by adding at the end the following new subparagraphs: "(C) RECAPTURE OF PROFITS FROM RESALE.— Except as provided in subparagraph (D), if any eligible single family property sold (i) to a qualifying household, or (ii) to a lowerincome family pursuant to subparagraph (B)(iiXH), paragraph (12XCXi), or paragraph (13XB), is resold by the qualifying household or lower-income family during the 1-year period beginning upon initial acquisition by the household or lower-income family, the Corporation shall recapture 75 percent of the amount of any proceeds from the resale that exceed the sum of (I) the original sale price for the acquisition of the property by the qualifying household or lower-income family; (II) the costs of any improvements to the property made after the date of the acquisition, and (III) any closing costs in connection with the acquisition. ' (D) EXCEPTIONS TO RECAPTURE REQUIREMENT.— "(i) RELOCATION. —The Corporation (or its successor) may in its discretion waive the applicability (I) to any qualifying household of the requirement under subparagraph (C) and the requirements relating to residency of a qualifying household under paragraphs (9)(L)(ii) and (iii), and (II) to any lower-income family of the requirement under subparagraph (C) and the residency requirements under subparagraph (B)(ii)(II). The Corporation may grant any such a waiver only for good cause shown, including any necessary relocation of the qualifying household or lower-income family. "(ii) OTHER RECAPTURE PROVISIONS. —The requirement under subparagraph (C) shall not apply to any eligible single family property for which, upon resale by the qualifying household or lower-income family during the 1-year period beginning upon initial acquisition by the household or family, a portion of the sale proceeds or any subsidy provided in connection with the acquisition of the property by the household or family is required to be recaptured or repaid under any other Federal, State, or local law (including section 143(m) of the Internal Revenue Code of 1986) or regulation or under any sale agreement.". SEC. 605. AVOIDANCE OF DISPLACEMENT UNDER SINGLE FAMILY PROP- ERTY DISPOSITION PROGRAM. Section 21A(c)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(2)) is amended by adding after subparagraph (D) (as added by section 504(b) of this Act) the following new subparagraph: " (E) EXCEPTION TO AVOID DISPLACEMENT OF EXISTING RESI- DENTS.— Notwithstanding the first sentence of subparagraph (B), during the 180-day period following the date on which the Corporation makes an eligible single family property available for sale, the Corporation may sell the property to the household residing in the property, but only if (i) such household was residing in the property at the time notice regarding the property was provided to clearing-

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