Page:United States Statutes at Large Volume 113 Part 2.djvu/97

 PUBLIC LAW 106-74—OCT. 20, 1999 113 STAT. 1117 the Federal assistance for the project for a period having a duration of not less than the term of the existing affordability restrictions plus an additional 5 years. "(3) The authority under paragraph (2) to retain and use excess Applicability. charges shall apply— "(A) during fiscal year 2000, to all project owners collecting such excess charges; and "(B) during fisced year 2001 and thereafter— "(i) to any owner of: (I) a project with a mortgage insured under this section; (II) a project with a mortgage formerly insured under this section if such mortgage is held by the Secretary and the owner of such project is current with respect to the mortgage obliga- ^ tion; or (III) a project previously assisted under subsection (b) but without a mortgage insured under this section if the project was insured under section 207 of this Act before July 30, 1998, pursuant to section 223(f) of this Act and assisted under subsection (b); and "(ii) to other project owners not referred to in clause (i) who collect such excess charges, but only to the extent that such retention and use is approved in advance in an appropriation Act.". (c) PREVIOUSLY OWED EXCESS INCOME. —Section 236(g) of the National Housing Act (12 U.S.C. 1715z-l(g)), as amended by subsection (b) of this section, is further amended by adding at the end the following new paragraph: "(4) The Secretary shall not withhold approval of the retention by the owner of such excess charges because of the existence of unpaid excess charges if such unpaid amount is being remitted to the Secretary over a period of time in accordance with a workout agreement with the Secretary, unless the Secretary determines that the owner is in violation of the workout agreement.". (d) FLEXIBILITY REGARDING BASIC RENTS AND MARKET RENTS. — Section 236(f) of the National Housing Act (12 U.S.C. 1715z-l(f)(1)) is amended by striking the subsection designation and all that follows through the end of paragraph (1) and inserting the following: "(f)(l)(A)(i) For each dwelling unit there shall be established, with the approval of the Secretary, a basic rental charge and fair market rental charge. "(ii) The basic rental charge shall be— "(I) the amount needed to operate the project with pay- ments of principal and interest due under a mortgage bearing interest at the rate of 1 percent per annum; or "(II) an amount greater than that determined under clause (ii)(I), but not greater than the market rent for a comparable unassisted unit, reduced by the value of the interest reduction payments subsidy, "(iii) The fair market rental charge shall be— "(I) the amount needed to operate the project with pay- ments of principal, interest, and mortgage insurance premium which the mortgagor is obligated to pay under the mortgage covering the project; or "(II) an amount greater than that determined under clause (iii)(I), but not greater than the market rent for a comparable unassisted unit. 69-194 -01-4: QL 3 Part 2

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