Page:United States Statutes at Large Volume 97.djvu/1253

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1221 LIMITATION ON PREPAYMENT OF MORTGAGES ON MULTIFAMILY RENTAL HOUSING SEC. 433. Title II of the National Housing Act is amended by adding at the end thereof the following: "LIMITATION ON PREPAYMENT OF MORTGAGES ON MULTIFAMILY RENTAL HOUSING "SEC. 250. (a) During any period in which an owner of a multi- family rental housing project is required to obtain the approval of the Secretary for prepayment of the mortgage, the Secretary shall not accept an offer to prepay the mortgage on such project unless— "(1) the Secretary has determined that such project is no longer meeting a need for rental housing for lower income families in the area or that the needs of lower income families in such project can more efficiently and effectively be met through other Federal housing assistance taking into accotmt the remaining time the project could meet such needs; "(2) the Secretary (A) has determined that the tenants have been notified of the owner's request for approval of a prepay- ment; (B) has provided the tenants with an opportunity to comment on the owner's request; and (C) has taken such com- ments into consideration; and "(3) the Secretary has ensured that there is a plan for provid- ing relocation assistance for adequate, comparable housing for any lower income tenant who will be displaced as a result of the prepayment and withdrawal of the project from the program. "(b) In the case of a project assisted under section 236 or the proviso to section 221(d)(5) of this title, section 101 of the Housing and Urban Development Act of 1965, or section 202 of the Housing Act of 1959 where the owner has the right to prepay the mortgage covering the assisted project without the Secretary's approval, the Secretary shall give a priority for additional assistance under sec- tion 8 of the United States Housing Act of 1937 and section 201 of the Housing and Community Development Amendments of 1978 to tenants and applicants to become tenants of the project, if— "(1) funds to provide such additional assistemce are available; and "(2) the Secretary determines that making such additional assistance available to the project is necessary to prevent the owner from prepaying the mortgage. "(c) Any owner of a multifamily rental housing project referred to in subsection (b) who receives additional assistance under section 8 of the United States Housing Act of 1937 under the priority estab- lished in subsection (b) shall— "(1) fully utilize the assistance which is available; "(2) grant a priority to applicants to become tenants who have the lowest incomes; and "(3) maintain the low-income character of the project for a period at least equal to the remaining term of the project mortgage to the extent that assistance is provided. "(d) For purposes of this section, the term 'lower income families' has the meaning given such term in section 3(b)(2) of the United States Housing Act of 1937.". 12 USC 1715Z-15. 12 USC 1715Z-1. 12 USC 1715/. 12 USC 1701s, 42 usc 1451. 12 USC 1701q. 42 USC 1437f. 12 USC 1715Z-1 and note, 1715z-la. 42 USC 1437f. 42 USC 1437a.

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