Page:United States Statutes at Large Volume 107 Part 2.djvu/197

 PUBLIC LAW 103-120—OCT. 27, 1993 107 STAT. 1149 (b) FUNDING REQUIREMENTS.— In carrying out this section, the Secretary shall ensure that not less tiian 50 percent of the funds appropriated for the demonstration program each year are used in coi\junction with the disposition of either— (1) multifamily properties owned by the Department; or (2) multifamily properties securing mortgages held by the Department. (c) CONTRACT TERMS.— (1) IN GENERAL. —Project-based assistance under this section shall be provided pursuant to a contract entered into by the Secretary and the owner of the eligible housing that— (A) provides assistance for a term of not less than 60 months and not greater than 180 months; and (B) provides for contract rents, to be determined by the Secretary, which shall not exceed contract rents permitted under section 8 of the United States Housing Act of 1937, taking into consideration any costs for the construction, rehabilitation, or acquisition of the housing. (2) AMENDMENT TO SECTION 203. —Section 203 of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1701Z-11) is amended by adding at the end the following new subsection: "(1) Project-based assistance in connection with the disposition of a multifamily housing project may be provided for a contract term of less than 15 years if such assistance is provided— "(1) under a contract authorized under section 6 of the HUD Demonstration Act of 1993; and "(2) pursuant to a disposition plan under this section for a project that is determined by the Secretary to be otherwise in compliance with this section.. (d) LIMITATION. — (1) The Secretary may not provide (or make a commitment to provide) more than 50 percent of the funding for housing financed by any single pension fund, except that this limitation shall not ajpply if the Secretary, after the end of the 6-month period beginning on the date notice is issued under subsection (e)— (A) determines that— (i) there are no expressions of interest that are likely to result in approvable applications in the reasonably foreseeable future; or (ii) any such expressions of interest are not likely to use all funding under this section; and (B) so informs the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate. (2) If the Secretary determines that there are expressions of interest referred to in paragraph (IXAXii), the Secretary may reserve funding sufficient in the Secretary's determination to fund such applications and may use any remaining funding for other pension funds in accordance with this section. (e) IMPLEMENTATION. —The Secretary shall by notice establish such requirements as may be necessary to cany out the provisions of this section. The notice shall take effect upon issuance. Effective date. (0 APPLICABILITY OF ERISA—Notwithstanding section 514(d) of the Employee Retirement Income Security Act of 1974, nothing in this section shall be construed to authorize any action or failure to act that would constitute a violation of such Act.

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