Page:United States Statutes at Large Volume 112 Part 3.djvu/845

 PUBLIC LAW 105-276—OCT. 21, 1998 112 STAT. 2675 "(i) is designed as a dwelling for occupancy by 1 to 4 families; "(ii) is located in a revitalization area; "(iii) was previously subject to a mortgage insured under the provisions of this Act; and "(iv) is owned by the Secretary pursuant to the payment of insurance benefits under this Act. "(B) MORTGAGES.— Any mortgage that— "(i) is an interest in a property that meets the requirements of clauses (i) and (ii) of subparagraph (A); "(ii) was previously insured under the provisions of this Act; and "(iii) is held by the Secretary pursuant to the pay- ment of insurance benefits under this Act. For purposes of this subsection, an asset under this subparagraph shall be considered to be located in a revitalization area, or in the asset control area of a preferred purchaser, if the property described in clause (i) is located in such area. "(C) FUTURE INTERESTS.—Any contingent future interest of the Secretary in an asset described in subparagraph (A) or (B). "(3) REVITALIZATION AREAS.— The Secretary shall designate areas as revitalization areas for purposes of this subsection. Before designation of an area as a revitalization area, the Secretary shall consult with affected units of general local government and interested nonprofit organizations. The Secretary may designate as revitalization areas only areas that meet one of the following requirements: "(A) VERY-LOW INCOME AREA.— The median household income for the area is less than 60 percent of the median household income for— "(i) in the case of any area located within a metropolitan area, such metropolitan area; or "(ii) in the case of any area not located within a metropolitan area, the State in which the area is located. " (B) HIGH CONCENTRATION OF ELIGIBLE ASSETS.—A high rate of default or foreclosure for single family mortgages insured under the National Housing Act has resulted, or may result, in the area— "(i) having a disproportionately high concentration of eligible assets, in comparison with the concentration of such assets in surrounding areas; or "(ii) being detrimentally impacted by eligible assets in the vicinity of the area. "(C) Low HOME OWNERSHIP RATE.— The rate for home ownership of single family homes in the area is substantially below the rate for homeownership in the metropolitan area. " (4) PREFERENCE FOR SALE TO PREFERRED PURCHASERS. — The^ Secretary shall provide a preference, among prospective purchasers of eligible assets, for sale of such assets to any purchaser who— "(A) is—

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