Page:United States Statutes at Large Volume 111 Part 2.djvu/310

 Ill STAT. 1390 PUBLIC LAW 105-65—OCT. 27, 1997 Contracts. (1) IN GENERAL.—Subject to subsection (b)(3), the Secretary shall enter into portfolio restructuring agreements with participating administrative entities for the implementation of mortgage restructuring and rental assistance sufficiency plans to restructure multifamily housing mortgages insured or held by the Secretary under the National Housing Act, in order to— (A) reduce the costs of expiring contracts for assistance under section 8 of the United States Housing Act of 1937; (B) address financially and physically troubled projects; and (C) correct management and ownership deficiencies. (2) PORTFOLIO RESTRUCTURING AGREEMENTS. —Each portfolio restructuring agreement entered into under this subsection shall— (A) be a cooperative agreement to establish the obligations and requirements between the Secretary and the participating administrative entity; (B) identify the eligible multifamily housing projects or groups of projects for which the participating administrative entity is responsible for assisting in developing and implementing approved mortgage restructuring and rental assistance sufficiency plans under section 514; (C) require the participating administrative entity to review and certify to the accuracy and completeness of the evgJuation of rehabilitation needs required under section 514(e)(3) for each eligible multifamily housing project included in the portfolio restructuring agreement, in accordance with regulations promulgated by the Secretary; (D) identify the responsibilities of both the participating administrative entity and the Secretary in implementing a mortgage restructuring and rental assistance sufficiency plan, including any actions proposed to be taken under section 516 or 517; (E) require each mortgage restructuring and rental assistance sufficiency plan to be prepared in accordance with the requirements of section 514 for each eligible multifamily housing project; (F) include other requirements established by the Secretary, including a right of the Secretary to terminate the contract immediately for failure of the participating administrative entity to comply with any applicable requirement; (G) if the participating administrative entity is a State housing finance agency or a local housing agency, indemnify the participating administrative entity against lawsuits and penalties for actions taken pursuant to the agreement, excluding actions involving willful misconduct or negligence; (H) include compensation for all reasonable expenses incurred by the participating administrative entity necessary to perform its duties under this subtitle; and (I) include, where appropriate, incentive agreements with the participating administrative entity to reward superior performance in meeting the purposes of this Act. (b) SELECTION OF PARTICIPATING ADMINISTRATIVE ENTITY. —

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