Page:United States Statutes at Large Volume 94 Part 2.djvu/398

 94 STAT. 1676

PUBLIC LAW 96-399—OCT. 8, 1980 cooperative project, or reduce the number of units in such project, or (B) which establishes a leasehold interest in, or other rights to use, possess, or gain access to, a condominium or cooperative unit. CONDOMINIUM AND COOPERATIVE CONVERSIONS

15 USC 3605.

SEC. 606. It is the sense of the Congress that, when multifamily rental housing projects are converted to condominium or cooperative use, tenants in those projects are entitled to adequate notice of the pending conversion and to receive the first opportunity to purchase units in the converted projects and that State and local governments which have not already provided for such notice and opportunity for purchase should move toward that end. The Congress believes it is the responsibility of State and local governments to provide for such notice and opportunity to purchase in a prompt manner. The Congress has decided not to intervene and therefore leaves this responsibility to State and local governments to be carried out. FEDERAL HOUSING ADMINISTRATION INSURANCE

15 USC 3606.

SEC. 607. Where an application for mortgage or loan insurance in connection with a conversion or purchase of a rental housing project being undertaken by a tenants' organization is submitted, the Secretary of Housing and Urban Development shall expedite the processing of the application in every way and shall make a final decision on such application at the earliest practicable time. OPTIONAL TERMINATION OF SELF-DEALING CONTRACTS

15 USC 3607.

SEC. 608. (a) Any contract or portion thereof which is entered into after the effective date of this title, and which— (1) provides for operation, maintenance, or management of a condominium or cooperative association in a conversion project, or of property serving the condominium or cooperative unit owners in such project; (2) is between such unit owners or such association and the developer or an affiliate of the developer; (3) was entered into while such association was controlled by the developer through special developer control or because the developer held a majority of the votes in such association; and (4) is for a period of more than three years, including any automatic renewal provisions which are exercisable at the sole option of the developer or an affiliate of the developer, may be terminated without penalty by such unit owners or such association. O> Any termination under this section may occur only during the t) two-year period beginning on the date on which— (1) special developer control over the association is terminated; or (2) the developer owns 25 per centum or less of the units in the conversion project, whichever occurs first. (c) A termination under this section shall be by a vote of owners of not less than two-thirds of the units other than the units owned by the developer or an affiliate of the developer.

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