Page:United States Statutes at Large Volume 111 Part 2.djvu/324

 Ill STAT. 1404 PUBLIC LAW 105-65—OCT. 27, 1997 (d) PROHIBITION ON EQUITY SHARING BY THE SECRETARY. — The Secretary is prohibited from participating in any equity agreement or profit-sharing agreement in conjunction with any eligible multifamily housing project. (e) CONFLICT OF INTEREST GUIDELINES.— The Secretary may establish guidelines to prevent conflicts of interest by a participating administrative entity that provides, directly or through risk-sharing arrangements, any form of credit enhancement or financing pursuant to subsections (b)(3) or (b)(4) or to prevent conflicts of interest by any other person or entity under this subtitle. 42 USC 1437f SEC. 518. MANAGEMENT STANDARDS. Each participating administrative entity shall establish management standards, including requirements governing conflicts of interest between owners, managers, contractors with an identity of interest, pursuant to guidelines established by the Secretary and consistent with industry standards. 42 USC 1437f SEC. 519. MONITORING OF COMPLIANCE. ^°^' (a) COMPLIANCE AGREEMENTS.—(1) Pursuant to regulations issued by the Secretary under section 522(a), each participating administrative entity, through binding contractual agreements with owners and otherwise, shall ensure long-term compliance with the provisions of this subtitle. Each agreement shall, at a minimum, provide for— (A) enforcement of the provisions of this subtitle; and (B) remedies for the breach of those provisions. (2) If the participating administrative entity is not qualified under the United States Housing Act of 1937 to be a section 8 contract administrator or fails to perform its duties under the portfolio restructuring agreement, the Secretary shall have the right to enforce the agreement. (b) PERIODIC MONITORING.— (1) IN GENERAL.—Not less than annually, each participating administrative entity that is qualified to be the section 8 contract administrator shall review the status of all multifamily housing projects for which a mortgage restructuring and rental assistance sufficiency plan has been implemented. (2) INSPECTIONS.— Each review under this subsection shall include onsite inspection to determine compliance with housing codes and other requirements as provided in this subtitle and the portfolio restructuring agreements. (3) ADMINISTRATION. — If the participating administrative entity is not qualified under the United States Housing Act of 1937 to be a section 8 contract administrator, either the Secretary or a qualified State or local housing agency shall be responsible for the review required by this subsection. (c) AUDIT BY THE SECRETARY. —The Comptroller General of the United States, the Secretary, and the Inspector General of the Department of Housing and Urban Development may conduct an audit at any time of any multifamily housing project for which a mortgage restructuring and rental assistance sufficiency plan has been implemented. 42 USC 1437f SEC. 520. REPORTS TO CONGRESS. (a) ANNUAL REVIEW. —In order to ensure compliance with this subtitle, the Secretary shall conduct an annual review and report

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