Page:United States Statutes at Large Volume 110 Part 4.djvu/52

 110 STAT. 2898 PUBLIC LAW 104-204—SEPT. 26, 1996 (2) SAVINGS PROVISIONS. — Nothing in this section shall be construed to affect any commitment entered into before the date of enactment of this Act under the demonstration program under section 210 of the Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1996. (3) DEFINITIONS.— For purposes of this section— (A) the term "demonstration program" means the program established under subsection (b); (B) the term "expiring contract" means a contract for project-based assistance under section 8 of the United States Housing Act of 1937 that expires during fiscal year 1997; (C) the term "family" has the same meaning as in section 3(b) of the United States Housing Act of 1937; (D) the term "multifamily housing project" means a property consisting of more than 4 dwelling units that is covered in whole or in part by a contract for projectbased assistance; (E) the term "owner" has the same meaning as in section 8(f) of the United States Housing Act of 1937; (F) the term "project-based assistance" mesins rental assistance under section 8 of the United States Housing Act of 1937 that is attached to a multifamily housing project; (G) the term "Secretary" means the Secretary of Housing and Urban Development; and (H) the term "tenant-based assistance" has the same meaning as in section 8(f) of the United States Housing Act of 1937. (b) DEMONSTRATION AUTHORITY.— (1) IN GENERAL. — Subject to the funding limitation in subsection (1), the Secretary shall administer a demonstration program with respect to multifamily projects— (A) whose owners agree to participate; (B) with rents on units assisted under section 8 of the United States Housing Act of 1937 that are, in the aggregate, in excess of 120 percent of the fair market rent of the market area in which the project is located; and (C) the mortgages of which are insured under the National Housing Act. (2) PURPOSE. — The demonstration program shall be designed to obtain as much information as is feasible on the economic viability and rehabilitation needs of the multifamily housing projects in the demonstration, to test various approaches for restructuring mortgages to reduce the financial risk to the FHA Insurance Fund while reducing the cost of section 8 subsidies, and to test the feasibility and desirability of— (A) ensuring, to the maximum extent practicable, that the debt service and operating expenses, including adequate reserves, attributable to such multifamily projects can be supported at the comparable market rent with or without mortgage insurance under the National Housing Act and with or without additional section 8 rental subsidies;

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