Page:United States Statutes at Large Volume 113 Part 2.djvu/96

 113 STAT. 1116 PUBLIC LAW 106-74—OCT. 20, 1999 "Such term does not include any project with an expiring contract described in paragraph (1) or (2) of section 524(e).". (c) PROJECTS EXEMPTED FROM RESTRUCTURING AGREEMENTS.— Section 514(h) of the Multifamily Assisted Housing Reform and Affordabihty Act of 1997 (42 U.S.C. 1437f note) is amended by inserting before the semicolon at the end the following: "and the financing involves mortgage insurance under the National Housing Act, such that the implementation of a mortgage restructuring and rental assistance sufficiency plan under this subtitle is in conflict with applicable law or agreements governing such financing". (d) CONFORMING AMENDMENTS. —Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) is amended— (1) by designating as subsection (v) the sentence added by section 405(c) of The Balanced Budget Downpa3mient Act, I (Public Law 104-99; 110 Stat. 44); and (2) by striking subsection (w). SEC. 532. SECTION 236 ASSISTANCE. (a) CONTINUED RECEIPT OF SUBSIDIES UPON REFINANCING.— Section 236(e) of the National Housing Act (12 U.S.C. 1715z-l(e)) is amended— (1) by inserting "(1)" after "(e)"; and (2) by adding at the end the following new paragraph: "(2) A project for which interest reduction payments are made under this section and for which the mortgage on the project has been refinanced shall continue to receive the interest reduction payments under this section under the terms of the contract for such pa3niients, but only if the project owner enters into such binding commitments as the Secretary may require (which shall be applicable to any subsequent owner) to ensure that the owner will continue to operate the project in accordance with all lowincome affordability restrictions for the project in connection with the Federal assistance for the project for a period having a duration that is not less than the term for which such interest reduction payments are made plus an additional 5 years.". (b) RETENTION OF EXCESS INCOME.—Section 236(g) of the National Housing Act (12 U.S.C. 1715z-l(g)) is amended— (1) by inserting "(1)" after "(g)"; (2) by striking the last sentence; and (3) by adding at the end the following new paragraphs: "(2) Subject to paragraph (3) and notwithstanding any other requirements of this subsection, a project owner may retain some or all of such excess charges for project use if authorized by the Secretary. Such excess charges shall be used for the project and upon terms and conditions established by the Secretary, unless the Secretary permits the owner to retain funds for non-project use after a determination that the project is well-maintained housing in good condition and that the owner has not engaged in material adverse financial or managerial actions or omissions as described in section 516 of the Multifamily Assisted Housing Reform and Affordability Act of 1997. In connection with the retention of funds for non-project use, the Secretary may require the project owner to enter into a binding commitment (which shall be applicable to any subsequent owner) to ensure that the owner will continue to operate the project in accordance with all lowincome affordability restrictions for the project in connection with

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