Page:United States Statutes at Large Volume 124.djvu/4107

 124 STAT. 4081 PUBLIC LAW 111–372—JAN. 4, 2011 For purposes of paragraph (6)(B), the term ‘acceptable development cost’ shall include, as applicable, the cost of acquisition, rehabilita- tion, loan prepayment, initial reserve deposits, and transaction costs.’’. SEC. 203. USE OF PROJECT RESIDUAL RECEIPTS. Paragraph (1) of section 811(d) of the American Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended— (1) by striking ‘‘not more than 15 percent of’’; and (2) by inserting before the period at the end the following: ‘‘or other purposes approved by the Secretary’’. SEC. 204. ADDITIONAL PROVISIONS. Section 811 of the American Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended by adding at the end the following new subsections: ‘‘(e) SENIOR PRESERVATION RENTAL ASSISTANCE CONTRACTS.— Notwithstanding any other provision of law, in connection with a prepayment plan for a project approved under subsection (a) by the Secretary or as otherwise approved by the Secretary to prevent displacement of elderly residents of the project in the case of refinancing or recapitalization and to further preservation and affordability of such project, the Secretary shall provide project- based rental assistance for the project under a senior preservation rental assistance contract, as follows: ‘‘(1) Assistance under the contract shall be made available to the private nonprofit organization owner— ‘‘(A) for a term of at least 20 years, subject to annual appropriations; and ‘‘(B) under the same rules governing project-based rental assistance made available under section 8 of the Housing Act of 1937 or under the rules of such assistance as may be made available for the project. ‘‘(2) Any projects for which a senior preservation rental assistance contract is provided shall be subject to a use agree- ment to ensure continued project affordability having a term of the longer of (A) the term of the senior preservation rental assistance contract, or (B) such term as is required by the new financing. ‘‘(f) SUBORDINATION OR ASSUMPTION OF EXISTING DEBT.—In lieu of prepayment under this section of the indebtedness with respect to a project, the Secretary may approve— ‘‘(1) in connection with new financing for the project, the subordination of the loan for the project under section 202 of the Housing Act of 1959 (as in effect before the enactment of the Cranston-Gonzalez National Affordable Housing Act) and the continued subordination of any other existing subordinate debt previously approved by the Secretary to facilitate preserva- tion of the project as affordable housing; or ‘‘(2) the assumption (which may include the subordination described in paragraph (1)) of the loan for the project under such section 202 in connection with the transfer of the project with such a loan to a private nonprofit organization. ‘‘(g) FLEXIBLE SUBSIDY DEBT.—The Secretary shall waive the requirement that debt for a project pursuant to the flexible subsidy program under section 201 of the Housing and Community Develop- ment Amendments of 1978 (12 U.S.C. 1715z–1a) be prepaid in Waiver authority.