Page:United States Statutes at Large Volume 110 Part 2.djvu/432

 110 STAT. 1321-285 PUBLIC LAW 104-134—APR. 26, 1996 Effective date. 12 USC 1715n note. 42 USC 1437f note. contract. The transfer shall be under such terms as the Secretary may prescribe.". DOCUMENTATION OF MULTIFAMILY REFINANCINGS SEC. 209. Notwithstanding the 16th paragraph under the item relating to "administrative provisions" in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1995 (Public Law 103- 327; 108 Stat. 2316), the amendments to section 223(a)(7) of the National Housing Act made by the 15th paragraph of such Act shall be effective during fiscal year 1996 and thereafter. FHA MULTIFAMILY DEMONSTRATION AUTHORITY SEC. 210. (a) On and after October 1, 1995, and before October 1, 1997, the Secretary of Housing and Urban Development shall initiate a demonstration program with respect to multifamily projects whose owners agree to participate and whose mortgages are insured under the National Housing Act and that are assisted under section 8 of the United States Housing Act of 1937 and whose present section 8 rents are, in the aggregate, in excess of the fair market rent of the locality in which the project is located. These programs shall be designed to test the feasibility and desirability of the goal of ensuring, to the maximum extent practicable, that the debt service and operating expenses, including adequate reserves, attributable to such multifamily projects can be supported with or without mortgage insurance under the National Housing Act and with or without above-market rents and utilizing project-based assistance or, with the consent of the property owner, tenant-based assistance, while taking into account the need for assistance of low- and very low-income families in such projects. In carrying out this demonstration, the Secretary may use arrangements with third parties, under which the Secretary may provide for the assumption by the third parties (by delegation, contract, or otherwise) of some or all of the functions, obligations, and benefits of the Secretary. (1) GOALS. —The Secretary of Housing and Urban Development shall carry out the demonstration programs under this section in a manner that— (A) will protect the financial interests of the Federal Government; (B) will result in significant discretionary cost savings through debt restructuring and subsidy reduction; and (C) will, in the least costly fashion, address the goals of— (i) maintaining existing housing stock in a decent, safe, and sanitary condition; (ii) minimizing the involuntary displacement of tenants; (iii) restructuring the mortgages of such projects in a manner that is consistent with local housing market conditions; (iv) supporting fair housing strategies; (v) minimizing any adverse income tax impact on property owners; and (vi) minimizing any adverse impact on residential neighborhoods.

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