Page:United States Statutes at Large Volume 112 Part 3.djvu/847

 PUBLIC LAW 105-276—OCT. 21, 1998 112 STAT. 2677 assets purchased by the purchaser, except that the Secretary may, by including a provision in the sale agreement required under paragraph (7), provide for a lower rate of home ownership in sales involving exceptional circumstances. "(ii) The purchaser has agreed that each asset property for an eligible asset purchased will be rehabilitated to comply with minimum standards for housing quality established by the Secretary for purposes of the program under this subsection. " (6) DISCOUNT FOR PREFERRED PURCHASERS.— " (A) IN GENERAL.— For the purpose of providing a public purpose discount for the bulk sales of eligible assets made under the program under this subsection by preferred purchasers, each eligible asset sold through the program under this subsection to a preferred purchaser shall be sold at a price that is discounted from the value of the asset, as based on the appraised value of the asset property (as such term is defined in paragraph (8)). "(B) APPRAiSALS.The Secretary shall require that each appraisal of an eligible asset under this paragraph is based upon— "(i) the market value of the asset property in its "(ii) the value of the property appraised for home ownership. "(C) DISCOUNT CLASSES. — The Secretary, in the sole discretion of the Secretary, shall establish the discount under this paragraph for an eligible asset, which shall be in one of the following amounts: "(i) STANDARD DISCOUNT.— In the case only of eligible assets with asset properties that, at the time of sale under this subsection, do not meet the standards for housing quality established pursuant to paragraph (5)(B)(ii), an amount that— "(I) is appropriate to provide reasonable resources for the improvement such assets; and "(II) takes into consideration the financial safety and soundness of the Mutual Mortgage Insurance Fund. "(ii) DEEP DISCOUNT. —In the case only of eligible assets described in clause (i) for which the Secretary determines a deep discount is appropriate, an amount that exceeds the amount of a standard discount under clause (i). In making a determination whether a deep discount is appropriate, the Secretary may consider the condition of the asset property, the extent of resources available to the preferred purchaser, the comprehensive revitalization plan undertaken by such purchaser, or any other circumstances the Secretary considers appropriate. "(iii) MINIMAL DISCOUNT.—In the case only of eligible assets with asset properties that, at the time of sale under this subsection, meet or substantially meet the standards for housing quality established
 * as is* physical condition, which shall take into consideration age and condition of major mechanical and structural systems; and

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