Page:United States Statutes at Large Volume 106 Part 5.djvu/126

 106 STAT. 3764 PUBLIC LAW 102-550—OCT. 28, 1992 the conditions under paragraphs (1) and (2) of subsection (a) exist, (B) requirements for evidence on which such determinations are based, and (C) criteria on which such determinations are based.". SEC. 306. RECEIPT OF INCENTIVES TO EXTEND LOW-INCOME USE. Section 219(a) of the Housing and Community Development Act of 1987 (12 U.S.C. 4109(a)) is amended— (1) in the first sentence, by inserting after "receive" the following: "(for each year after the approval of the plan of action)"; and (2) by adding at the end the following new sentence: "The Secretary shall take such actions as are necessary to ensure that owners receive the annual authorized return for the housing determined under section 214(a) during the period in which rent increases are phased in as provided in section 222(a)(2)(E), including (in order of preference)(1) allowing the owner access to residual receipt accounts (pursuant to subsection (b)(1) of this section), (2) deferring remittance of excess rent payments, and (3) providing an increase in rents permitted under an existing contract under section 8 of the United States Housing Act of 1937 (pursuant to subsection (b)(2) of this section).. SEC. 307. TRANSFER TO QUALIFIED PURCHASERS. (a) ELIGIBILITY FOR ASSISTANCE.— The matter preceding subparagraph (A) in section 220(d)(2) of the Housing and Community Development Act of 1987 (12 U.S.C. 4110(d)(2)) is amended by inserting after "purchasers" the following: "(including all priority piirchasers other than resident councils acquiring under the homeownership program authorized by section 226)". (b) PROJECT OVERSIGHT. — Section 220(d)(2)(D) of the Housing and Community Development Act of 1987 (12 U.S.C. 4110(d)(2)(D)) is amended by inserting before the semicolon the following: ", and in the case of a priority purchaser, meet project oversight costs". (c) RETURN. —Section 220(d)(2)(E) of the Housing and Community Development Act of 1987 (12 U.S.C. 4110(d)(2)(E)) is amended to read as follows: "(E) receive a distribution equal to an 8 percent annual return on any actual cash investment (from sources other than assistance provided under this title) made to acquire or rehabilitate the project;". (d) REIMBURSEMENT.—Section 220(d)(2)(F) of the Housing and Community Development Act of 1987 (12 U.S.C. 4110(d)(2)(F)) is amended to read as follows: "(F) in the case of a priority purchaser, receive a / reimbursement of all reasonable transaction expenses associated with the acquisition, loan closing, and implementation of an approved plan of action; and". (e) INCENTIVES.— Section 220(d)(3)(A) of the Housing and Community Development Act of 1987 (12 U.S.C. 4110(d)(3)(A)) is amended by striking "any residual receipts" and all that follows through "(b) or (c) and". SEC. 308. CRITERIA FOR PLAN OF ACTION INVOLVING INCENTIVES. (a) ELIMINATION OF WINDFALL PROFITS TEST.— Section 222 of the Housing and Community Development Act of 1987 (12 U.S.C. 4112) is amended by striking subsection (e).

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