Page:United States Statutes at Large Volume 123.djvu/383

 123STA T . 3 6 3 PUBLIC LA W 111 –5—FE B.1 7, 2 0 0 9Sta t em a y e l e c t whi ch do e sn ote x ceed 85p e r cent o f the prod u ct of —(1) the sum of— ( A )1 0 0 percent of the State housin g credit ceiling for 2 00 9 which is attri b utable to amounts described in clauses (i) and (iii) of section 4 2(h)( 3 )( C ) of the I nternal R e v enue Code of 198 6, and ( B ) 40 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (ii) and (iv) of such section, multiplied by (2) 10 . (c) S UBAW A RDSFO R L OW - I NC O ME BU IL DIN G S.— (1) IN GENERAL.—A State housing credit agency receiving a grant under this section shall use such grant to ma k e sub- awards to finance the construction or ac q uisition and rehabilita- tion of qualified low-income buildings. A subaward under this section may be made to finance a qualified low-income building with or without an allocation under section 42 of the Internal Revenue Code of 1986, except that a State housing credit agency may make subawards to finance qualified low-income buildings without an allocation only if it makes a determination that such use will increase the total funds available to the State to build and rehabilitate affordable housing. In complying with such determination requirement, a State housing credit agency shall establish a process in which applicants that are allocated credits are required to demonstrate good faith efforts to obtain investment commitments for such credits before the agency makes such subawards. (2) SUBAWARDS SUB J EC T TO SAME RE Q UIREMENTS AS LOW- INCOME H OUSING CREDIT ALLOCATIONS.—Any such subaward with respect to any qualified low-income building shall be made in the same manner and shall be sub j ect to the same limitations (including rent, income, and use restrictions on such building) as an allocation of housing credit dollar amount allocated by such State housing credit agency under section 42 of the Internal Revenue Code of 1986, except that such subawards shall not be limited by, or otherwise affect (except as provided in subsection (h)(3)( J ) of such section), the State housing credit ceiling applicable to such agency. (3) COM P LIANCE AND ASSET MANAGEMENT.— T he State housing credit agency shall perform asset management func- tions to ensure compliance with section 42 of the Internal Revenue Code of 1986 and the long-term viability of buildings funded by any subaward under this section. The State housing credit agency may collect reasonable fees from a subaward recipient to cover expenses associated with the performance of its duties under this paragraph. The State housing credit agency may retain an agent or other private contractor to satisfy the requirements of this paragraph. (4) RECAPTURE.—The State housing credit agency shall impose conditions or restrictions, including a requirement pro- viding for recapture, on any subaward under this section so as to assure that the building with respect to which such subaward is made remains a qualified low-income building during the compliance period. Any such recapture shall be payable to the Secretary of the Treasury for deposit in the general fund of the Treasury and may be enforced by means Procedu re s.