Page:United States Statutes at Large Volume 95.djvu/432

 95 STAT. 406

Waiver Ante, p. 400.

PUBLIC LAW 97-35—AUG. 13, 1981 "(1) the property is located in an area in which there is a significant demand for such units, as determined by the Secretary; and (2) the unit of general local government in which the property is located and the local public housing agency approve of such units being utilized for such purpose. The Secretary may waive, in appropriate cases, the limitation and preference described in the second and third sentences of section 3(b)(3) with respect to the assistance made available under this subsection.". AID FOR ELIGIBLE FAMILIES

42 USC I437f.

Ante, p. 384.

12 USC 1720.

SEC. 325. Section 8 of the United States Housing Act of 1937 is amended— (1) by adding at the end of subsection (b)(2) the following: "Each contract to make assistance payments for newly constructed or substantially rehabilitated housing assisted under this section entered into after the date of enactment of the Housing and Community Development Amendments of 1981 shall provide that during the term of the contract the owner shall make available for occupancy by families which are eligible for assistance under this section, at the time of their initial occupancy, the number of units for which assistance is committed under the contract."; and (2) by inserting after "nonhandicapped persons" in the second sentence of subsection (c)(5) the following: "which are not subject to mortgages purchased under section 305 of the National HousingAct". MISCELLANEOUS HOUSING ASSISTANCE PROVISIONS

42 USC 1437f.

Survey. 42 USC 1437f note.

Report to Congress.

Regulations. 42 USC 1437f note.

SEC. 326. (a) Section 8(c) of the United States Housing Act of 1937 is amended by adding at the end thereof the following: "(8) Each contract under this section shall provide that the owner will notify tenants at least 90 days prior to the expiration of the contract of any rent increase which may occur as a result of the expiration of such contract.". (b)(1) Within one year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall conduct a survey to determine the number of projects which are assisted under section 8 of the United States Housing Act of 1937 and are owned by developers or sponsors with five-year annual contributions contracts who plan to withdraw from the section 8 program when their contracts expire and who will increase rents in those projects to levels that the current residents of those projects will not be able to afford. Where such survey indicates that an owner intends to withdraw from the program, the Secretary shall notify affected residents of possible rent increases. (2) Not later than one year after the date of the enactment of this Act, the Secretary shall transmit to the Congress a report indicating alternative methods which may be utilized for recapturing the cost to the Federal Government of front-end investment in those units which are removed from the section 8 program. (c) The Secretary of Housing and Urban Development, after consultation with the Attorney General, shall develop regulations to prevent possible conflicts of interest on the part of Federal, State, and local government officials with regard to participation in projects assisted under section 8 of the United States Housing Act of 1937, and

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