Page:United States Statutes at Large Volume 111 Part 2.djvu/330

 Ill STAT. 1410 PUBLIC LAW 105-65—OCT. 27, 1997 "(V) materially failing to maintain the property according to housing quality standards after receipt of notice and a reasonable opportunity to cure; or "(VI) committing any act or omission that would warrsuit suspension or debarment by the Secretary; and "(iv) the term 'owner' as used in this subparagraph, in addition to it having the same meaning as in section 8(f) of the United States Housing Act of 1937, also means an affiliate of the owner; the term 'purchaser' as used in this subsection means any private person or entity, including a cooperative, an agency of the Federal Government, or a public housing agency, that, upon purchase of the project, would have the legal right to lease or sublease dwelling units in the project, and also means an affiliate of the purchaser; the terms 'affiliate of the owner' and 'affiliate of the purchaser' megms any person or entity (including, but not limited to, a general partner or managing member, or an officer of either) that controls an owner or purchaser, is controlled by an owner or purchaser, or is under common control with the owner or purchaser; the term 'control' means the direct or indirect power (under contract, equity ownership, the right to vote or determine a vote, or otherwise) to direct the financial, legal, beneficial or other interests of the owner or purchaser; and "(D) if the project owner demonstrates to the satisfaction of the Secretary— "(i) using information in a comprehensive needs assessment, that capital grant assistance is needed for rehabilitation of the project; and "(ii) that project income is not sufficient to support such rehabilitation. "(3) ELIGIBLE PURPOSES.— The Secretary may make grants to the owners of eligible projects for the purposes of— "(A) payment into project replacement reserves; "(B) debt service payments on non-Federal rehabilitation loans; and "(C) payment of nonrecurring maintenance and capital improvements, under such terms and conditions as are determined by the Secretary. "(4) GRANT AGREEMENT.— "(A) IN GENERAL.— The Secretary shall provide in any grant agreement under this subsection that the grant shall be terminated if the project fails to meet housing quality standards, as applicable on the date of enactment of the Multifamily Assisted Housing Reform and Affordability Act of 1997, or any successor standards for the physical conditions of projects, as are determined by the Secretary. "(B) AFFORDABILITY AND USE CLAUSES. —The Secretary shall include in a grant agreement under this subsection a requirement for the project owners to maintain such affordability and use restrictions as the Secretary determines to be appropriate. "(C) OTHER TERMS.— The Secretary may include in a grant agreement under this subsection such other terms and conditions as the Secretary determines to be necessary. "(5) DELEGATION.—

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