Page:United States Statutes at Large Volume 108 Part 1.djvu/369

 PUBLIC LAW 103-233—APR. 11, 1994 108 STAT. 343 Sec. 305. Environmental review provisions. Sec. 306. Correction of FHA multifamily mortgage limits. Sec. 307. Amendments to FHA multifamily risk-sharing and housing finance agency pilot programs. Sec. 308. Subsidy layering review. TITLE I—MULTIFAMILY PROPERTY DISPOSITION REFORM SEC. 101. MULTIFAMILY PROPERTY DISPOSITION. (a) FINDINGS.— The Congress finds that— 12 USC I70iz-ii (1) the portfolio of multifamily housing project mortgages insured by the FHA is severely troubled and at risk of default, requiring the Secretary to increase loss reserves from $5,500,000,000 in 1991 to $11,900,000,000 in 1992 to cover estimated future losses; (2) the inventory of multifamily housing projects owned by the Secretary has more than quadrupled since 1989, and, by the end of 1994, may exceed 69,000 units; (3) the cost to the Federal Government of owning and maintaining multifamily housing projects escalated to $288,000,000 in fiscal year 1993; (4) the inventory of multifamily housing projects subject to mortgages held by the Secretary has increased dramatically, to more than 2,400 mortgages, and approximately half of these mortgages, with approximately 219,000 units, are delinquent; (5) the inventory of insured and formerly insured multifamily housing projects is deteriorating, potentially endangering tenants and neighborhoods; and (6) the current statutory framework governing the disposition of multifamily housing projects effectively impedes the Government's ability to dispose of properties, protect tenants, and ensure that projects are maintained over time. (b) MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING PROJECTS. —Section 203 of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1701z-ll) is amended to read as follows: "SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUS- ING PROJECTS. "(a) GOALS. —The Secretary of Housing and Urban Development shall manage or dispose of multifamily housing projects that are owned by the Secretary or that are subject to a mortgage held by the Secretary in a manner that— "(1) is consistent with the National Housing Act and this section; "(2) will protect the financial interests of the Federal Government; and "(3) will, in the least costly fashion among reasonable available alternatives, address the goals of— "(A) preserving certain housing so that it can remain available to and affordable by low-income persons; "(B) preserving and revitalizing residential neighborhoods; "(C) maintaining existing housing stock in a decent, safe, and sanitary condition;