Page:United States Statutes at Large Volume 110 Part 4.djvu/51

 PUBLIC LAW 104-204—SEPT. 26, 1996 110 STAT. 2897 a section 8 contract, the Secretary shall, at the request of the owner, renew the expiring contract— (A) for a period of not more than one year; and (B) at rent levels that are equal to those under the expiring contract as of the date on which the contract expires. (4) OTHER CONTRACTS. — (A) PARTICIPATION IN DEMONSTRATION. — For a contract covering an FHA-insured multifamily housing project that expires during fiscal year 1997 with ^ent levels that exceed the percentage described in paragraph (1) and after notice to the tenants, the Secretary shall, at the request of the owner of the project and after notice to the tenants, include that multifamily housing project in the demonstration program under section 212 of this Act. The Secretary shall ensure that a multifamily housing project with an expiring contract in fiscal year 1997 shall be allowed to be included in the demonstration. (B) EFFECT OF MATERIAL ADVERSE ACTIONS AND OMIS- SIONS.— Notwithstanding paragraph (1) or any other provision of law, the Secretary shall not renew an expiring contract if the Secretary determines that the owner of the multifamily housing project has engaged in material adverse financial or managerisd actions or omissions with regard to the project (or with regard to other similar projects if the Secretary determines that such actions or omissions constitute a pattern of mismanagement that would warrant suspension or debarment by the Secretary). (C) TRANSFER OF PROPERTY. —For properties disqualified from the demonstration program because of actions by an owner or purchaser in accordance with subparagraph (B), the Secretary shall establish procedures to facilitate the voluntary sale or transfer of the property, with a pref- erence for tenant organizations and tenant-endorsed community-based nonprofit and public agency purchasers meeting such reasonable qualifications as may be established by the Secretary. The Secretary may include the transfer of section 8 project-based assistance. (5) TENANT PROTECTIONS.— Any family residing in an assisted unit in a multifamily housing project that is covered by an expiring contract that is not renewed, shall be offered tenant-based assistance before the date on which the contract expires or is not renewed. SEC. 212. FHA MULTIFAMILY DEMONSTRATION AUTHORITY.— 42 USC i437f (a) IN GENERAL.— note. (1) REPEAL. — (A) IN GENERAL. —Section 210 of the Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1996 (110 Stat. 1321) is repealed. Ante, p. 1321- (B) EXCEPTION. — Notwithstanding the repeal under 285. subparagraph (A), amounts made available under section 210(f) the Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1996 shall remain available for the demonstration program under this section through the end of fiscal year 1997.

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