US LAWS, STATUTES & CODES ON-LINE

US Supreme Court Decisions On-Line | US Laws



§ 1701z-11. —  Management and disposition of multifamily housing projects.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC1701z-11]

 
                       TITLE 12--BANKS AND BANKING
 
                      CHAPTER 13--NATIONAL HOUSING
 
Sec. 1701z-11. Management and disposition of multifamily housing 
        projects
        

(a) Goals

    The Secretary of Housing and Urban Development shall manage or 
dispose of multifamily housing projects that are owned by the Secretary 
or that are subject to a mortgage held by the Secretary in a manner 
that--
        (1) is consistent with the National Housing Act [12 U.S.C. 1701 
    et seq.] and this section;
        (2) will protect the financial interests of the Federal 
    Government; and
        (3) will, in the least costly fashion among reasonable available 
    alternatives, address the goals of--
            (A) preserving certain housing so that it can remain 
        available to and affordable by low-income persons;
            (B) preserving and revitalizing residential neighborhoods;
            (C) maintaining existing housing stock in a decent, safe, 
        and sanitary condition;
            (D) minimizing the involuntary displacement of tenants;
            (E) maintaining housing for the purpose of providing rental 
        housing, cooperative housing, and homeownership opportunities 
        for low-income persons;
            (F) minimizing the need to demolish multifamily housing 
        projects;
            (G) supporting fair housing strategies; and
            (H) disposing of such projects in a manner consistent with 
        local housing market conditions.

In determining the manner in which a project is to be managed or 
disposed of, the Secretary may balance competing goals relating to 
individual projects in a manner that will further the purposes of this 
section.

(b) Definitions

    For purposes of this section:

                   (1) Multifamily housing project

        The term ``multifamily housing project'' means any multifamily 
    rental housing project which is, or prior to acquisition by the 
    Secretary was, assisted or insured under the National Housing Act 
    [12 U.S.C. 1701 et seq.], or was subject to a loan under section 
    1701q of this title.

                       (2) Subsidized project

        The term ``subsidized project'' means a multifamily housing 
    project that, immediately prior to the assignment of the mortgage on 
    such project to, or the acquisition of such mortgage by, the 
    Secretary, was receiving any of the following types of assistance:
            (A) Below market interest rate mortgage insurance under the 
        proviso of section 221(d)(5) of the National Housing Act [12 
        U.S.C. 1715l(d)(5)].
            (B) Interest reduction payments made in connection with 
        mortgages insured under section 236 of the National Housing Act 
        [12 U.S.C. 1715z-1].
            (C) Direct loans made under section 1701q of this title.
            (D) Assistance in the form of--
                (i) rent supplement payments under section 101 of the 
            Housing and Urban Development Act of 1965 [12 U.S.C. 1701s],
                (ii) additional assistance payments under section 
            236(f)(2) of the National Housing Act [12 U.S.C. 1715z-
            1(f)(2)],
                (iii) housing assistance payments made under section 23 
            of the United States Housing Act of 1937 [42 U.S.C. 1421b] 
            (as in effect before January 1, 1975), or
                (iv) housing assistance payments made under section 8 of 
            the United States Housing Act of 1937 [42 U.S.C. 1437f] 
            (excluding payments made for tenant-based assistance under 
            section 8),

        if (except for purposes of section 183(c) of the Housing and 
        Community Development Act of 1987) such assistance payments are 
        made to more than 50 percent of the units in the project.

                   (3) Formerly subsidized project

        The term ``formerly subsidized project'' means a multifamily 
    housing project owned by the Secretary that was a subsidized project 
    immediately prior to its acquisition by the Secretary.

                      (4) Unsubsidized project

        The term ``unsubsidized project'' means a multifamily housing 
    project owned by the Secretary that is not a subsidized project or a 
    formerly subsidized project.

                           (5) Affordable

        A unit shall be considered affordable if--
            (A) for units occupied--
                (i) by very low-income families, the rent does not 
            exceed 30 percent of 50 percent of the area median income, 
            as determined by the Secretary, with adjustments for smaller 
            and larger families; and
                (ii) by low-income families other than very low-income 
            families, the rent does not exceed 30 percent of 80 percent 
            of the area median income, as determined by the Secretary, 
            with adjustments for smaller and larger families; or

            (B) the unit, or the family residing in the unit, is 
        receiving assistance under section 8 of the United States 
        Housing Act of 1937 [42 U.S.C. 1437f].

        (6) Low-income families and very low-income families

        The terms ``low-income families'' and ``very low-income 
    families'' shall have the meanings given the terms in section 3(b) 
    of the United States Housing Act of 1937 [42 U.S.C. 1437a(b)].

                       (7) Preexisting tenant

        The term ``preexisting tenant'' means, with respect to a 
    multifamily housing project acquired pursuant to this section by a 
    purchaser other than the Secretary at foreclosure or after sale by 
    the Secretary, a family that resides in a unit in the project 
    immediately before the acquisition of the project by the purchaser.

                           (8) Market area

        The term ``market area'' means a market area determined by the 
    Secretary.

                            (9) Secretary

        The term ``Secretary'' means the Secretary of Housing and Urban 
    Development.

(c) Disposition of property

                    (1) Disposition to purchasers

        In carrying out this section, the Secretary may dispose of a 
    multifamily housing project owned by the Secretary on a negotiated, 
    competitive bid, or other basis, on such terms as the Secretary 
    deems appropriate considering the low-income character of the 
    project and consistent with the goals in subsection (a) of this 
    section, only to a purchaser determined by the Secretary to be 
    capable of--
            (A) satisfying the conditions of the disposition plan 
        developed under paragraph (2) for the project;
            (B) implementing a sound financial and physical management 
        program that is designed to enable the project to meet 
        anticipated operating and repair expenses to ensure that the 
        project will remain in decent, safe, and sanitary condition and 
        in compliance with any standards under applicable State or local 
        laws, rules, ordinances, or regulations relating to the physical 
        condition of the housing and any such standards established by 
        the Secretary;
            (C) responding to the needs of the tenants and working 
        cooperatively with tenant organizations;
            (D) providing adequate organizational, staff, and financial 
        resources to the project; and
            (E) meeting such other requirements as the Secretary may 
        determine.

                        (2) Disposition plan

        (A) In general

            Prior to the sale of a multifamily housing project that is 
        owned by the Secretary, the Secretary shall develop an initial 
        disposition plan for the project that specifies the minimum 
        terms and conditions of the Secretary for disposition of the 
        project, the initial sales price that is acceptable to the 
        Secretary, and the assistance that the Secretary plans to make 
        available to a prospective purchaser in accordance with this 
        section.

        (B) Market-wide plans

            In developing the initial disposition plan under this 
        subsection for a multifamily housing project located in a market 
        area in which at least 1 other multifamily housing project owned 
        by the Secretary is located, the Secretary may coordinate the 
        disposition of all such multifamily housing projects located 
        within the same market area to the extent and in such manner as 
        the Secretary determines appropriate to carry out the goals 
        under subsection (a) of this section.

        (C) Sales price

            The initial sales price shall be reasonably related to the 
        intended use of the project after sale, any rehabilitation 
        requirements for the project, the rents for units in the project 
        that can be supported by the market, the amount of rental 
        assistance available for the project under section 8 of the 
        United States Housing Act of 1937 [42 U.S.C. 1437f], the 
        occupancy profile of the project (including family size and 
        income levels for tenant families), and any other factors that 
        the Secretary considers appropriate.

        (D) Community and tenant input

            In carrying out this section, the Secretary shall develop 
        procedures--
                (i) to obtain appropriate and timely input into 
            disposition plans from officials of the unit of general 
            local government affected, the community in which the 
            project is situated, and the tenants of the project; and
                (ii) to facilitate, where feasible and appropriate, the 
            sale of multifamily housing projects to existing tenant 
            organizations with demonstrated capacity, to public or 
            nonprofit entities that represent or are affiliated with 
            existing tenant organizations, or to other public or 
            nonprofit entities.

        (E) Technical assistance

            To carry out the procedures developed under subparagraph 
        (D), the Secretary may provide technical assistance, directly or 
        indirectly, and may use amounts available for technical 
        assistance under the Emergency Low Income Housing Preservation 
        Act of 1987, subtitle C of the Low-Income Housing Preservation 
        and Resident Homeownership Act of 1990 [12 U.S.C. 4141 et seq.], 
        subtitle B of title IV of the Cranston-Gonzalez National 
        Affordable Housing Act [42 U.S.C. 12871 et seq.], or this 
        section, for the provision of technical assistance under this 
        paragraph. Recipients of technical assistance funding under the 
        provisions referred to in this subparagraph shall be permitted 
        to provide technical assistance to the extent of such funding 
        under any of such provisions or under this subparagraph, 
        notwithstanding the source of the funding.

                        (3) Foreclosure sale

        In carrying out this section, the Secretary shall--
            (A) prior to foreclosing on any mortgage held by the 
        Secretary on any multifamily housing project, notify both the 
        unit of general local government in which the property is 
        located and the tenants of the property of the proposed 
        foreclosure sale; and
            (B) dispose of a multifamily housing project through a 
        foreclosure sale only to a purchaser that the Secretary 
        determines is capable of implementing a sound financial and 
        physical management program that is designed to enable the 
        project to meet anticipated operating and repair expenses to 
        ensure that the project will remain in decent, safe, and 
        sanitary condition and in compliance with any standards under 
        applicable State or local laws, rules, ordinances, or 
        regulations relating to the physical condition of the housing 
        and any such standards established by the Secretary.

(d) Management and maintenance of properties

               (1) Contracting for management services

        In carrying out this section, the Secretary may--
            (A) contract for management services for a multifamily 
        housing project that is owned by the Secretary (or for which the 
        Secretary is mortgagee in possession) with for-profit and 
        nonprofit entities and public agencies (including public housing 
        authorities) on a negotiated, competitive bid, or other basis at 
        a price determined by the Secretary to be reasonable, with a 
        manager the Secretary has determined is capable of--
                (i) implementing a sound financial and physical 
            management program that is designed to enable the project to 
            meet anticipated operating and maintenance expenses to 
            ensure that the project will remain in decent, safe, and 
            sanitary condition and in compliance with any standards 
            under applicable State or local laws, rules, ordinances, or 
            regulations relating to the physical condition of the 
            project and any such standards established by the Secretary;
                (ii) responding to the needs of the tenants and working 
            cooperatively with tenant organizations;
                (iii) providing adequate organizational, staff, and 
            financial resources to the project; and
                (iv) meeting such other requirements as the Secretary 
            may determine; and

            (B) require the owner of a multifamily housing project that 
        is subject to a mortgage held by the Secretary to contract for 
        management services for the project in the manner described in 
        subparagraph (A).

           (2) Maintenance of projects owned by Secretary

        In the case of multifamily housing projects that are owned by 
    the Secretary (or for which the Secretary is mortgagee in 
    possession), the Secretary shall--
            (A) to the greatest extent possible, maintain all such 
        occupied projects in a decent, safe, and sanitary condition and 
        in compliance with any standards under applicable State or local 
        laws, rules, ordinances, or regulations relating to the physical 
        condition of the housing and any such standards established by 
        the Secretary;
            (B) to the greatest extent possible, maintain full occupancy 
        in all such projects; and
            (C) maintain all such projects for purposes of providing 
        rental or cooperative housing.

        (3) Projects subject to a mortgage held by Secretary

        In the case of any multifamily housing project that is subject 
    to a mortgage held by the Secretary, the Secretary shall require the 
    owner of the project to carry out the requirements of paragraph (2).

(e) Required assistance

    In disposing of multifamily housing property under this section, 
consistent with the goal of subsection (a)(3)(A) of this section, the 
Secretary shall take, separately or in combination with other actions 
under this subsection or subsection (f) of this section, one or more of 
the following actions:

        (1) Contract with owner for project-based assistance

        In the case of multifamily housing projects that are acquired by 
    a purchaser other than the Secretary at foreclosure or after sale by 
    the Secretary, the Secretary may enter into contracts under section 
    8 of the United States Housing Act of 1937 [42 U.S.C. 1437f] (to the 
    extent budget authority is available) with owners of the projects, 
    subject to the following requirements:

        (A) Subsidized or formerly subsidized projects receiving 
                mortgage-related assistance

            In the case of a subsidized or formerly subsidized project 
        referred to in subparagraphs (A) through (C) of subsection 
        (b)(2) of this section--
                (i) the contract shall be sufficient to assist at least 
            all units covered by an assistance contract under any of the 
            authorities referred to in subsection (b)(2)(D) of this 
            section before acquisition or foreclosure, unless the 
            Secretary acts pursuant to the provisions of subparagraph 
            (C);
                (ii) the contract shall provide that, when a vacancy 
            occurs in any unit in the project requiring project-based 
            rental assistance pursuant to this subparagraph that is 
            occupied by a family who is not eligible for assistance 
            under such section 8 [42 U.S.C. 1437f], the owner shall 
            lease the available unit to a family eligible for assistance 
            under such section 8; and
                (iii) the Secretary shall take actions to ensure that 
            any unit in any such project that does not otherwise receive 
            project-based assistance under this subparagraph remains 
            available and affordable for the remaining useful life of 
            the project, as defined by the Secretary; to carry out this 
            clause, the Secretary may require purchasers to establish 
            use or rent restrictions maintaining the affordability of 
            such units.

        (B) Subsidized or formerly subsidized projects receiving rental 
                assistance

            In the case of a subsidized or formerly subsidized project 
        referred to in subsection (b)(2)(D) of this section that is not 
        subject to subparagraph (A)--
                (i) the contract shall be sufficient to assist at least 
            all units in the project that are covered, or were covered 
            immediately before foreclosure on or acquisition of the 
            project by the Secretary, by an assistance contract under 
            any of the provisions referred to in such subsection, unless 
            the Secretary acts pursuant to provisions of subparagraph 
            (C); and
                (ii) the contract shall provide that, when a vacancy 
            occurs in any unit in the project requiring project-based 
            rental assistance pursuant to this subparagraph that is 
            occupied by a family who is not eligible for assistance 
            under such section 8 [42 U.S.C. 1437f], the owner shall 
            lease the available unit to a family eligible for assistance 
            under such section 8.

        (C) Exceptions

            (i) Authority

                In lieu of providing project-based assistance under 
            section 8 of the United States Housing Act of 1937 [42 
            U.S.C. 1437f] in accordance with subparagraph (A)(i) or 
            (B)(i) for a project, the Secretary may, for certain units 
            in unsubsidized projects located within the same market area 
            as the project otherwise required to be assisted with such 
            project-based assistance--
                    (I) require use and rent restrictions providing that 
                such units shall be available to and affordable by very 
                low-income families for the remaining useful life of the 
                project (as defined by the Secretary), or
                    (II) provide project-based assistance under section 
                8 for such units to be occupied by only very low-income 
                persons,

          but only if the requirements under clause (ii) are met.
            (ii) Requirements

                The requirements under this clause are that--
                    (I) upon the disposition of the project otherwise 
                required to be assisted with project-based assistance 
                under subparagraph (A)(i) or (B)(i), the Secretary shall 
                make available tenant-based assistance under section 8 
                [42 U.S.C. 1437f] to low-income families residing in 
                units otherwise required to be assisted with such 
                project-based assistance; and
                    (II) the number of units subject to use restrictions 
                or provided assistance under clause (i) shall be at 
                least equivalent to the number of units otherwise 
                required to be assisted with project-based assistance 
                under section 8 in accordance with subparagraph (A)(i) 
                or (B)(i).

        (D) Unsubsidized projects

            Notwithstanding actions taken pursuant to subparagraph (C), 
        in the case of unsubsidized projects, the contract shall be 
        sufficient to provide--
                (i) project-based rental assistance for all units that 
            are covered, or were covered immediately before foreclosure 
            or acquisition, by an assistance contract under--
                    (I) the new construction and substantial 
                rehabilitation program under section 8(b)(2) of the 
                United States Housing Act of 1937 [42 U.S.C. 
                1437f(b)(2)] (as in effect before October 1, 1983);
                    (II) the property disposition program under section 
                8(b) of such Act;
                    (III) the project-based certificate program under 
                section 8 of such Act;
                    (IV) the moderate rehabilitation program under 
                section 8(e)(2) of such Act;
                    (V) section 23 of such Act [42 U.S.C. 1421b] (as in 
                effect before January 1, 1975);
                    (VI) the rent supplement program under section 101 
                of the Housing and Urban Development Act of 1965 [12 
                U.S.C. 1701s]; or
                    (VII) section 8 of the United States Housing Act of 
                1937, following conversion from assistance under section 
                101 of the Housing and Urban Development Act of 1965; 
                and

                (ii) tenant-based assistance under section 8 of the 
            United States Housing Act of 1937 for families that are 
            preexisting tenants of the project in units that, 
            immediately before foreclosure or acquisition of the project 
            by the Secretary, were covered by an assistance contract 
            under the loan management set-aside program under section 
            8(b) of the United States Housing Act of 1937.

         (2) Annual contribution contracts for tenant-based 
                                 assistance

        In the case of multifamily housing projects that are acquired by 
    a purchaser other than the Secretary at foreclosure or after sale by 
    the Secretary, the Secretary may enter into annual contribution 
    contracts with public housing agencies to provide tenant-based 
    assistance under section 8 of the United States Housing Act of 1937 
    [42 U.S.C. 1437f] on behalf of all low-income families who are 
    otherwise eligible for assistance in accordance with subparagraph 
    (A), (B), or (D) of paragraph (1) on the date that the project is 
    acquired by the purchaser, subject to the following requirements:

        (A) Requirement of sufficient affordable housing in area

            The Secretary may not take action under this paragraph 
        unless the Secretary determines that there is available in the 
        area an adequate supply of habitable, affordable housing for 
        very low-income families and other low-income families using 
        tenant-based assistance.

        (B) Limitation for subsidized and formerly subsidized projects

            The Secretary may not take actions under this paragraph in 
        connection with units in subsidized or formerly subsidized 
        projects for more than 10 percent of the aggregate number of 
        units in such projects disposed of by the Secretary in any 
        fiscal year.

                        (3) Other assistance

        (A) In general

            In accordance with the authority provided under the National 
        Housing Act [12 U.S.C. 1701 et seq.], the Secretary may provide 
        other assistance pursuant to subsection (f) of this section to 
        the owners of multifamily housing projects that are acquired by 
        a purchaser other than the Secretary at foreclosure, or after 
        sale by the Secretary, on terms that ensure that--
                (i) at least the units in the project otherwise required 
            to receive project-based assistance pursuant to 
            subparagraphs (A), (B), or (D) of paragraph (1) are 
            available to and affordable by low-income persons; and
                (ii) for the remaining useful life of the project, as 
            defined by the Secretary, there shall be in force such use 
            or rent restrictions as the Secretary may prescribe.

        (B) Very low-income tenants

            If, as a result of actions taken pursuant to this paragraph, 
        the rents charged to any very low-income families residing in 
        the project who are otherwise required (pursuant to subparagraph 
        (A), (B), or (D) of paragraph (1)) to receive project-based 
        assistance under section 8 of the United States Housing Act of 
        1937 [42 U.S.C. 1437f] exceed the amount payable as rent under 
        section 3(a) of the United States Housing Act of 1937 [42 U.S.C. 
        1437a(a)], the Secretary shall provide tenant-based assistance 
        under section 8 of such Act to such families.

(f) Discretionary assistance

    In addition to the actions required under subsection (e) of this 
section for a subsidized, formerly subsidized, or unsubsidized 
multifamily housing project, the Secretary may, pursuant to the 
disposition plan and the goals in subsection (a) of this section, take 
one or more of the following actions:

                     (1) Discounted sales price

        In accordance with the authority provided under the National 
    Housing Act [12 U.S.C. 1701 et seq.], the Secretary may reduce the 
    selling price of the project. Such reduced sales price shall be 
    reasonably related to the intended use of the property after sale, 
    any rehabilitation requirements for the project, the rents for units 
    in the project that can be supported by the market, the amount of 
    rental assistance available for the project under section 8 of the 
    United States Housing Act of 1937 [42 U.S.C. 1437f], the occupancy 
    profile of the project (including family size and income levels for 
    tenant families), and any other factors that the Secretary considers 
    appropriate.

                    (2) Use and rent restrictions

        The Secretary may require certain units in a project to be 
    subject to use or rent restrictions providing that such units will 
    be available to and affordable by low- and very low-income persons 
    for the remaining useful life of the property, as defined by the 
    Secretary.

                        (3) Short-term loans

        The Secretary may provide short-term loans to facilitate the 
    sale of a multifamily housing project if--
            (A) authority for such loans is provided in advance in an 
        appropriation Act;
            (B) such loan has a term of not more than 5 years;
            (C) the Secretary determines, based upon documentation 
        provided to the Secretary, that the borrower has obtained a 
        commitment of permanent financing to replace the short-term loan 
        from a lender who meets standards established by the Secretary; 
        and
            (D) the terms of such loan are consistent with prevailing 
        practices in the marketplace or the provision of such loan 
        results in no cost to the Government, as defined in section 661a 
        of title 2.

                         (4) Up-front grants

        If the Secretary determines that action under this paragraph is 
    more cost-effective than establishing rents pursuant to subsection 
    (h)(2) of this section, the Secretary may utilize the budget 
    authority provided for contracts issued under this section for 
    project-based assistance under section 8 of the United States 
    Housing Act of 1937 [42 U.S.C. 1437f] to (in addition to providing 
    project-based section 8 rental assistance) provide up-front grants 
    for the necessary cost of rehabilitation and other related 
    development costs.

                     (5) Tenant-based assistance

        The Secretary may make available tenant-based assistance under 
    section 8 of the United States Housing Act of 1937 to families 
    residing in a multifamily housing project that do not otherwise 
    qualify for project-based assistance.

                        (6) Alternative uses

        (A) In general

            Notwithstanding any other provision of law, after providing 
        notice to and an opportunity for comment by preexisting tenants, 
        the Secretary may allow not more than--
                (i) 10 percent of the total number of units in 
            multifamily housing projects that are disposed of by the 
            Secretary during any fiscal year to be made available for 
            uses other than rental or cooperative uses, including low-
            income homeownership opportunities, or in any particular 
            project, community space, office space for tenant or 
            housing-related service providers or security programs, or 
            small business uses, if such uses benefit the tenants of the 
            project; and
                (ii) 5 percent of the total number of units in 
            multifamily housing projects that are disposed of by the 
            Secretary during any fiscal year to be used in any manner, 
            if the Secretary and the unit of general local government or 
            area-wide governing body determine that such use will 
            further fair housing, community development, or neighborhood 
            revitalization goals.

        (B) Displacement protection

            The Secretary may take actions under subparagraph (A) only 
        if--
                (i) tenant-based rental assistance under section 8 of 
            the United States Housing Act of 1937 [42 U.S.C. 1437f] is 
            made available to each eligible family residing in the 
            project that is displaced as a result of such actions; and
                (ii) the Secretary determines that sufficient habitable, 
            affordable rental housing is available in the market area in 
            which the project is located to ensure use of such 
            assistance.

       (7) Transfer for use under other programs of Secretary

        (A) In general

            Notwithstanding the provisions of subsection (e) of this 
        section, the Secretary may, pursuant to an agreement under 
        subparagraph (B), transfer a multifamily housing project--
                (i) to a public housing agency for use of the project as 
            public housing; or
                (ii) to an entity eligible to own or operate housing 
            assisted under section 1701q of this title or under section 
            811 of the Cranston-Gonzalez National Affordable Housing Act 
            [42 U.S.C. 8013] for use as supportive housing under either 
            of such sections.

        (B) Requirements for agreement

            An agreement providing for the transfer of a project 
        described in subparagraph (A) shall--
                (i) contain such terms, conditions, and limitations as 
            the Secretary determines appropriate, including requirements 
            to ensure use of the project as public housing, supportive 
            housing under section 1701q of this title, or supportive 
            housing under section 811 of the Cranston-Gonzalez National 
            Affordable Housing Act [42 U.S.C. 8013], as applicable; and
                (ii) ensure that no tenant of the project will be 
            displaced as a result of actions taken under this paragraph.

                           (8) Rebuilding

        Notwithstanding any provision of section 8 of the United States 
    Housing Act of 1937 [42 U.S.C. 1437f], the Secretary may provide 
    project-based assistance in accordance with subsection (e) of this 
    section to support the rebuilding of a multifamily housing project 
    rebuilt or to be rebuilt (in whole or in part and on-site, off-site, 
    or in a combination of both) in connection with disposition under 
    this section, if the Secretary determines that--
            (A) the project is not being maintained in a decent, safe, 
        and sanitary condition;
            (B) rebuilding the project would be less expensive than 
        substantial rehabilitation;
            (C) the unit of general local government in which the 
        project is located approves the rebuilding and makes a financial 
        contribution or other commitment to the project; and
            (D) the rebuilding is a part of a local neighborhood 
        revitalization plan approved by the unit of general local 
        government.

    The provisions of subsection (j)(2) of this section shall apply to 
    any tenants of the project who are displaced.

                   (9) Emergency assistance funds

        The Secretary may make arrangements with State agencies and 
    units of general local government of States receiving emergency 
    assistance under part A of title IV of the Social Security Act [42 
    U.S.C. 601 et seq.] for the provision of assistance under such Act 
    [42 U.S.C. 301 et seq.] on behalf of eligible families who would 
    reside in any multifamily housing projects.

(g) Protection for unassisted very low-income tenants

    For each multifamily housing project disposed of under this section, 
the Secretary shall require that, for any very low-income family who is 
a preexisting tenant of the project who (upon disposition) would be 
required to pay rent in an amount in excess of 30 percent of the 
adjusted income (as such term is defined in section 3(b) of the United 
States Housing Act of 1937 [42 U.S.C. 1437a(b)]) of the family--
        (1) for a period of 2 years beginning upon the date of the 
    acquisition of the project by the purchaser under such disposition, 
    the rent for the unit occupied by the family may not be increased 
    above the rent charged immediately before acquisition;
        (2) such family shall be considered displaced for purposes of 
    any system of preferences established pursuant to section 
    6(c)(4)(A), 8(d)(1)(A), or 8(o)(6)(A) of the United States Housing 
    Act of 1937 [42 U.S.C. 1437d(c)(4)(A), 1437f(d)(1)(A), and 
    1437f(o)(6)(A)]; and
        (3) notice shall be provided to such family, not later than the 
    date of the acquisition of the project by the purchaser--
            (A) of the requirements under paragraphs (1) and (2); and
            (B) that, after the expiration of the period under paragraph 
        (1), the rent for the unit occupied by the family may be 
        increased.

(h) Contract requirements

    Contracts for project-based rental assistance under section 8 of the 
United States Housing Act of 1937 [42 U.S.C. 1437f] provided pursuant to 
this section shall be subject to the following requirements:

                          (1) Contract term

        The contract shall have a term of 15 years, except that the term 
    may be less than 15 years--
            (A) to the extent that the Secretary finds that, based on 
        the rental charges and financing for the multifamily housing 
        project to which the contract relates, the financial viability 
        of the project can be maintained under a contract having such a 
        term; except that the Secretary shall require that the amount of 
        rent payable by tenants of the project for units assisted under 
        such contract shall not exceed the amount payable for rent under 
        section 3(a) of the United States Housing Act of 1937 [42 U.S.C. 
        1437a(a)] for a period of at least 15 years; or
            (B) if such assistance is provided--
                (i) under a contract authorized under section 6 of the 
            HUD Demonstration Act of 1993; and
                (ii) pursuant to a disposition plan under this section 
            for a project that is determined by the Secretary to be 
            otherwise in compliance with this section.

                          (2) Contract rent

        The Secretary shall establish the contract rents under such 
    contracts at levels that, together with other resources available to 
    the purchasers, provide sufficient amounts for the necessary costs 
    of rehabilitating and operating the multifamily housing project and 
    do not exceed the percentage of the existing housing fair market 
    rentals for the market area in which the project assisted under the 
    contract is located as determined by the Secretary under section 
    8(c) of the United States Housing Act of 1937 [42 U.S.C. 1437f(c)].

(i) Right of first refusal for local and State government agencies

                          (1) Notification

        Not later than 30 days after the Secretary acquires title to a 
    multifamily housing project, the Secretary shall notify the 
    appropriate unit of general local government (including public 
    housing agencies) and State agency or agencies designated by the 
    chief executive officer of the State in which the project is located 
    of such acquisition of title and that, for a period beginning upon 
    such notification that does not exceed 90 days, such unit of general 
    local government and agency or agencies shall have the exclusive 
    right under this subsection to make bona fide offers to purchase the 
    project.

                     (2) Right of first refusal

        During the 90-day period, the Secretary may not sell or offer to 
    sell the multifamily housing project other than to a party notified 
    under paragraph (1), unless the unit of general local government and 
    the designated State agency or agencies notify the Secretary that 
    they will not make an offer to purchase the project. The Secretary 
    shall accept a bona fide offer to purchase the project made during 
    such period if it complies with the terms and conditions of the 
    disposition plan for the project or is otherwise acceptable to the 
    Secretary.

                            (3) Procedure

        The Secretary shall establish any procedures necessary to carry 
    out this subsection.

(j) Displacement of tenants and relocation assistance

                           (1) In general

        Whenever tenants will be displaced as a result of the demolition 
    of, repairs to, or conversion in the use of, a multifamily housing 
    project that is owned by the Secretary (or for which the Secretary 
    is mortgagee in possession), the Secretary shall identify tenants 
    who will be displaced, and shall notify all such tenants of their 
    pending displacement and of any relocation assistance that may be 
    available. In the case of a multifamily housing project that is 
    subject to a mortgage held by the Secretary, the Secretary shall 
    require the owner of the project to carry out the requirements of 
    this paragraph, if the Secretary has authorized the demolition of, 
    repairs to, or conversion in the use of such multifamily housing 
    project.

                   (2) Rights of displaced tenants

        The Secretary shall ensure for any such tenant (who continues to 
    meet applicable qualification standards) the right--
            (A) to return, whenever possible, to a repaired or rebuilt 
        unit;
            (B) to occupy a unit in another multifamily housing project 
        owned by the Secretary;
            (C) to obtain housing assistance under the United States 
        Housing Act of 1937 [42 U.S.C. 1437 et seq.]; or
            (D) to receive any other available similar relocation 
        assistance as the Secretary determines to be appropriate.

(k) Mortgage and project sales

                           (1) In general

        The Secretary may not approve the sale of any loan or mortgage 
    held by the Secretary (including any loan or mortgage owned by the 
    Government National Mortgage Association) on any subsidized project 
    or formerly subsidized project, unless such sale is made as part of 
    a transaction that will ensure that such project will continue to 
    operate at least until the maturity date of such loan or mortgage, 
    in a manner that will provide rental housing on terms at least as 
    advantageous to existing and future tenants as the terms required by 
    the program under which the loan or mortgage was made or insured 
    prior to the assignment of the loan or mortgage on such project to 
    the Secretary.

                    (2) Sale of certain projects

        The Secretary may not approve the sale of any subsidized 
    project--
            (A) that is subject to a mortgage held by the Secretary, or
            (B) if the sale transaction involves the provision of any 
        additional subsidy funds by the Secretary or a recasting of the 
        mortgage,

    unless such sale is made as part of a transaction that will ensure 
    that the project will continue to operate, at least until the 
    maturity date of the loan or mortgage, in a manner that will provide 
    rental housing on terms at least as advantageous to existing and 
    future tenants as the terms required by the program under which the 
    loan or mortgage was made or insured prior to the proposed sale of 
    the project.

          (3) Mortgage sales to State and local governments

        Notwithstanding any provision of law that requires competitive 
    sales or bidding, the Secretary may carry out negotiated sales of 
    mortgages held by the Secretary, without the competitive selection 
    of purchasers or intermediaries, to units of general local 
    government or State agencies, or groups of investors that include at 
    least one such unit of general local government or State agency, if 
    the negotiations are conducted with such agencies, except that--
            (A) the terms of any such sale shall include the agreement 
        of the purchasing agency or unit of local government or State 
        agency to act as mortgagee or owner of a beneficial interest in 
        such mortgages, in a manner consistent with maintaining the 
        projects that are subject to such mortgages for occupancy by the 
        general tenant group intended to be served by the applicable 
        mortgage insurance program, including, to the extent the 
        Secretary determines appropriate, authorizing such unit of local 
        government or State agency to enforce the provisions of any 
        regulatory agreement or other program requirements applicable to 
        the related projects; and
            (B) the sales prices for such mortgages shall be, in the 
        determination of the Secretary, the best prices that may be 
        obtained for such mortgages from a unit of general local 
        government or State agency, consistent with the expectation and 
        intention that the projects financed will be retained for use 
        under the applicable mortgage insurance program for the life of 
        the initial mortgage insurance contract.

        (4) Sale of mortgages covering unsubsidized projects

        Notwithstanding any other provision of law, the Secretary may 
    sell mortgages held on projects that are not subsidized or formerly 
    subsidized projects on such terms and conditions as the Secretary 
    may prescribe.

                   (5) Mortgage sale demonstration

        The Secretary may carry out a demonstration to test the 
    feasibility of restructuring and disposing of troubled multifamily 
    mortgages held by the Secretary through the establishment of 
    partnerships with public, private, and nonprofit entities.

                   (6) Project sale demonstration

        The Secretary may carry out a demonstration to test the 
    feasibility of disposing of troubled multifamily housing projects 
    that are owned by the Secretary through the establishment of 
    partnerships with public, private, and nonprofit entities.

(l) Report to Congress

    Not later than June 1 of each year, the Secretary shall submit to 
the Congress a report describing the status of multifamily housing 
projects owned by or subject to mortgages held by the Secretary, on an 
aggregate basis, which highlights the differences, if any, between the 
subsidized and the unsubsidized inventory. The report shall include--
        (1) the average and median size of the projects;
        (2) the geographic locations of the projects, by State and 
    region;
        (3) the years during which projects were assigned to the 
    Department, and the average and median length of time that projects 
    remain in the HUD-held inventory;
        (4) the status of HUD-held mortgages;
        (5) the physical condition of the HUD-held and HUD-owned 
    inventory;
        (6) the occupancy profile of the projects, including the income, 
    family size, race, and ethnic origin of current tenants, and the 
    rents paid by such tenants;
        (7) the proportion of units that are vacant;
        (8) the number of projects for which the Secretary is mortgagee 
    in possession;
        (9) the number of projects sold in foreclosure sales;
        (10) the number of HUD-owned projects sold;
        (11) a description of actions undertaken pursuant to this 
    section, including a description of the effectiveness of such 
    actions and any impediments to the disposition or management of 
    multifamily housing projects;
        (12) a description of the extent to which the provisions of this 
    section and actions taken under this section have displaced tenants 
    of multifamily housing projects;
        (13) a description of any of the functions performed in 
    connection with this section that are contracted out to public or 
    private entities or to States; and
        (14) a description of the activities carried out under 
    subsection (i) of this section during the preceding year.

(Pub. L. 95-557, title II, Sec. 203, Oct. 31, 1978, 92 Stat. 2088; Pub. 
L. 96-153, title II, Sec. 208, Dec. 21, 1979, 93 Stat. 1109; Pub. L. 96-
399, title II, Sec. 213, Oct. 8, 1980, 94 Stat. 1636; Pub. L. 100-242, 
title I, Sec. 181, Feb. 5, 1988, 101 Stat. 1868; Pub. L. 100-628, title 
X, Sec. 1010, Nov. 7, 1988, 102 Stat. 3266; Pub. L. 101-235, title II, 
Sec. 204(a), Dec. 15, 1989, 103 Stat. 2039; Pub. L. 101-625, title V, 
Sec. 579, Nov. 28, 1990, 104 Stat. 4245; Pub. L. 103-120, Sec. 6(c)(2), 
Oct. 27, 1993, 107 Stat. 1149; Pub. L. 103-233, title I, Sec. 101(b), 
Apr. 11, 1994, 108 Stat. 343; Pub. L. 105-276, title V, 
Sec. 514(b)(2)(C), Oct. 21, 1998, 112 Stat. 2548.)

                       References in Text

    The National Housing Act, referred to in subsecs. (a)(1), (b)(1), 
(e)(3)(A), and (f)(1), is act June 27, 1934, ch. 847, 48 Stat. 1246, as 
amended, which is classified principally to this chapter (Sec. 1701 et 
seq.). For complete classification of this Act to the Code, see section 
1701 of this title and Tables.
    Section 183(c) of the Housing and Community Development Act of 1987, 
referred to in subsec. (b)(2)(D), is section 183(c) of Pub. L. 100-242, 
which was set out as a note under section 1437f of Title 42, The Public 
Health and Welfare, prior to repeal by Pub. L. 105-276, title V, 
Sec. 582(a)(2), Oct. 21, 1998, 112 Stat. 2643.
    Section 101 of the Housing and Urban Development Act of 1965, 
referred to in subsecs. (b)(2)(D)(i) and (e)(1)(D)(i)(VI), (VII), is 
section 101 of Pub. L. 89-117, title I, Aug. 10, 1965, 79 Stat. 451, as 
amended, which enacted section 1701s of this title and amended sections 
1451 and 1465 of Title 42.
    Section 23 of the United States Housing Act of 1937, referred to in 
subsecs. (b)(2)(D)(iii) and (e)(1)(D)(i)(V), was classified to section 
1421b of Title 42 and was omitted from the Code following the general 
revision of the United States Housing Act of 1937 by Pub. L. 93-383, 
title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653.
    The Emergency Low Income Housing Preservation Act of 1987, referred 
to in subsec. (c)(2)(E), is title II of Pub. L. 100-242, Feb. 5, 1988, 
101 Stat. 1877, which, as amended by Pub. L. 101-625, is known as the 
Low-Income Housing Preservation and Resident Homeownership Act of 1990, 
and is classified principally to subchapter I (Sec. 4101 et seq.) of 
chapter 42 of this title. Subtitle C of the Low-Income Housing 
Preservation and Resident Homeownership Act of 1990, probably means 
subtitle C of title II of Pub. L. 100-242, as added by Pub. L. 102-550, 
which is classified generally to subchapter II (Sec. 4141 et seq.) of 
chapter 42 of this title. Another subtitle C of title II of Pub. L. 100-
242 amended sections 1472, 1485, and 1487 of Title 42. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 4101 of this title and Tables.
    The Cranston-Gonzalez National Affordable Housing Act, referred to 
in subsec. (c)(2)(E), is Pub. L. 101-625, Nov. 28, 1990, 104 Stat. 4079. 
Subtitle B of title IV of the Act is classified principally to part A 
(Sec. 12871 et seq.) of subchapter IV of chapter 130 of Title 42. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 12701 of Title 42 and Tables.
    The Social Security Act, referred to in subsec. (f)(9), is act Aug. 
14, 1935, ch. 531, 49 Stat. 620, as amended, which is classified 
generally to chapter 7 (Sec. 301 et seq.) of Title 42. Part A of title 
IV of the Act is classified generally to part A (Sec. 601 et seq.) of 
subchapter IV of chapter 7 of Title 42. For complete classification of 
this Act to the Code, see section 1305 of Title 42 and Tables.
    Section 6 of the HUD Demonstration Act of 1993, referred to in 
subsec. (h)(1)(B)(i), is section 6 of Pub. L. 103-120, which is set out 
as a note under section 1437f of Title 42.
    The United States Housing Act of 1937, as amended, referred to in 
subsec. (j)(2)(C), is act Sept. 1, 1937, ch. 896, as revised generally 
by Pub. L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653, 
which is classified generally to chapter 8 (Sec. 1437 et seq.) of Title 
42. For complete classification of this Act to the Code, see Short Title 
note set out under section 1437 of Title 42 and Tables.

                          Codification

    Section was enacted as part of the Housing and Community Development 
Amendments of 1978, and not as part of the National Housing Act which 
comprises this chapter.


                               Amendments

    1998--Subsec. (g)(2). Pub. L. 105-276 substituted ``any system of 
preferences established pursuant to section 6(c)(4)(A), 8(d)(1)(A), or 
8(o)(6)(A)'' for ``the preferences for assistance under sections 
6(c)(4)(A)(i), 8(d)(1)(A)(i), and 8(o)(3)(B)''.
    1994--Pub. L. 103-233 amended section generally, substituting 
present provisions for former provisions which related, in subsec. (a) 
to goals, in subsec. (b) to management or disposal of property by 
negotiated competitive bids, in subsec. (c) to maintenance of housing 
projects, in subsec. (d) to financial assistance to owner, in subsec. 
(e) to right of first refusal, in subsec. (f) to displacement of tenants 
and relocation assistance, in subsec. (g) to assignment or partial 
payment of mortgages, in subsec. (h) to limitations on certain project, 
loan, and mortgage sales, in subsec. (i) to definition of multifamily 
housing project, in subsec. (j) to rules and regulations, in subsec. (k) 
to annual report describing status of projects, and in subsec. (l) to 
project-based assistance.
    1993--Subsec. (l). Pub. L. 103-120 added subsec. (l).
    1990--Subsec. (a)(1)(B). Pub. L. 101-625, Sec. 579(a), struck out 
``or vacant'' after ``moderate-income persons''.
    Subsec. (d)(1). Pub. L. 101-625, Sec. 579(b)(1), struck out ``or are 
vacant (which units shall be made available for such families as soon as 
possible)'' before semicolon at end of cl. (B).
    Subsec. (d)(2), (3). Pub. L. 101-625, Sec. 579(b)(2), (3), added 
par. (2) and redesignated former par. (2) as (3).
    1989--Subsec. (k). Pub. L. 101-235 amended subsec. (k) generally. 
Prior to amendment, subsec. (k) read as follows: ``The Secretary shall 
annually submit to the Congress a report describing the activities 
carried out under subsection (e) of this section during the preceding 
year.''
    1988--Subsec. (a). Pub. L. 100-628, Sec. 1010(a), substituted 
``occupied by low- and moderate-income persons on the date of assignment 
or foreclosure (whichever is greater)'' for ``, on the date of 
assignment, occupied by low- and moderate-income persons'' in par. 
(1)(C).
    Pub. L. 100-242, Sec. 181(a), substituted introductory provisions 
and par. (1) for former introductory provisions and par. (1) which read 
as follows: ``It is the policy of the United States that the Secretary 
of Housing and Urban Development (hereinafter referred to as the 
`Secretary') shall manage and dispose of multifamily housing projects 
which are owned by the Secretary in a manner consistent with the 
National Housing Act and this section. The purpose of the property 
management and disposition program of the Department of Housing and 
Urban Development shall be to manage and dispose of projects in a manner 
which will protect the financial interests of the Federal Government and 
be less costly to the Federal Government than other reasonable 
alternatives by which the Secretary can further the goals of--
        ``(1) preserving the housing units so that at least those units 
    which are occupied by low- and moderate-income persons or which are 
    vacant, at the time of acquisition, are available to and affordable 
    by such persons;''.
    Subsec. (b)(2). Pub. L. 100-242, Sec. 181(b), designated existing 
provisions as subpar. (A) and redesignated former cls. (A) to (D) as 
cls. (i) to (iv), substituted ``subject to subsection (a) of this 
section that is owned by the Secretary (or for which the Secretary is 
mortgagee in possession)'' for ``, owned by the Secretary'', substituted 
``may determine; and'' for ``may determine.'', and added subpar. (B).
    Subsec. (c). Pub. L. 100-242, Sec. 181(c), amended subsec. (c) 
generally. Prior to amendment, subsec. (c) read as follows: ``Except 
where the Secretary has determined on a case-by-case basis that it would 
be clearly inappropriate, given the manner by which an individual 
project is to be managed or disposed of pursuant to subsection (a) of 
this section, the Secretary shall seek to--
        ``(1) maintain all occupied multifamily housing projects owned 
    by the Secretary in a decent, safe, and sanitary condition;
        ``(2) to the greatest extent possible, maintain full occupancy 
    in all multifamily housing projects owned by the Secretary; and
        ``(3) maintain the project for purposes of providing rental or 
    cooperative housing for the longest feasible period.''
    Subsec. (d). Pub. L. 100-628, Sec. 1010(b), amended third sentence 
of par. (1) generally. Prior to amendment, third sentence read as 
follows: ``Such contracts shall be sufficient to assist all units in 
subsidized or formerly subsidized projects, and all units in other 
projects that are occupied by lower income families eligible for 
assistance under such section 8 at the time of foreclosure or sale, as 
the case may be, and all units that are vacant at such time (which units 
shall be made available for such families as soon as possible).''
    Pub. L. 100-242, Sec. 181(d), added subsec. (d). Former subsec. (d) 
redesignated (f).
    Subsec. (e). Pub. L. 100-628, Sec. 1010(c), amended subsec. (e) 
generally. Prior to amendment, subsec. (e) read as follows: ``Upon 
receipt of a bona fide offer to purchase a project subject to subsection 
(a) of this section, the Secretary shall notify the local government and 
the State housing finance agency (or other agency or agencies designated 
by the Governor) of the proposed terms and conditions of the offer, 
including the assistance that the Secretary plans to make available to 
the prospective purchaser. The local government and the designated State 
agency shall have 90 days to match the offer and purchase the project. 
In administering the right of first refusal provided in this subsection, 
the Secretary shall offer assistance to the local government or 
designated State agency on terms and conditions at least as favorable as 
made available to the prospective purchaser. Notwithstanding any other 
provision of law to the contrary, a local government (including a public 
housing agency) or designated State agency may purchase a subsidized 
project or formerly subsidized project in accordance with this 
subsection.''
    Pub. L. 100-242, Sec. 181(d)(1), (e), added subsec. (e). Former 
subsec. (e) redesignated (g).
    Subsec. (f). Pub. L. 100-242, Sec. 181(d)(1), (e)(1), (g)(1), 
redesignated former subsec. (d) as (f). Former subsec. (f) redesignated 
(i).
    Subsec. (f)(1). Pub. L. 100-242, Sec. 181(f), substituted ``subject 
to subsection (a) of this section that is owned by the Secretary (or for 
which the Secretary is mortgagee in possession)'' for ``owned by the 
Secretary'', and inserted at end ``In the case of a multifamily housing 
project subject to subsection (a) of this section that is not owned by 
the Secretary (and for which the Secretary is not mortgagee in 
possession), the Secretary shall require the owner of the project to 
carry out the requirements of this paragraph.''
    Subsec. (g). Pub. L. 100-242, Sec. 181(d)(1), (e)(1), redesignated 
former subsec. (e) as (g). Former subsec. (g) redesignated (j).
    Subsec. (h). Pub. L. 100-242, Sec. 181(d)(1), (e)(1), (g), added 
subsec. (h).
    Subsec. (i). Pub. L. 100-628, Sec. 1010(d), (e), substituted 
``(excluding payments made for certificates under subsection (b)(1) or 
vouchers under subsection (o) of this section), if (except for purposes 
of paragraphs (1) and (2) of subsection (h) of this section), and 
section 183(c) of the Housing and Community Development Act of 1987) 
such housing assistance payments are made to more than 50 percent of the 
units in the project'' for ``(other than subsection (b)(1) of such 
section), without regard to whether such payments are made to all or a 
portion of the units in the project'' in par. (2) (E) and added par. 
(4).
    Pub. L. 100-242, Sec. 181(e)(1), (g)(1), (h), redesignated former 
subsec. (f) as (i), designated existing provisions as par. (1), and 
added pars. (2) and (3).
    Subsec. (j). Pub. L. 100-242, Sec. 181(g)(1), redesignated former 
subsec. (g) as (j).
    Subsec. (k). Pub. L. 100-628, Sec. 1010(f), added subsec. (k).
    1980--Subsec. (a). Pub. L. 96-399, Sec. 213(a), in par. (1) inserted 
provisions respecting occupation of units by low- and moderate-income 
persons or units vacant at the time of acquisition, and added par. (6).
    Subsec. (b)(1). Pub. L. 96-399, Sec. 213(b), inserted provisions 
relating to the number of project units occupied by low- and moderate-
income persons.
    Subsec. (c)(3). Pub. L. 96-399, Sec. 213(c), added par. (3).
    Subsec. (d)(2)(B), (C). Pub. L. 96-399, Sec. 213(d), inserted 
exception for tenants of above-moderate income.
    Subsec. (f). Pub. L. 96-399, Sec. 213(e), substituted provisions 
respecting applicability to projects assisted or insured under this 
chapter, or subject to loans under section 1701q of this title or 
section 1452b of title 42, or projects acquired by the Secretary 
pursuant to any other provision of law, for provisions respecting 
applicability to assistance under section 1715z-1 of this title, the 
proviso of section 1715l(d)(5) of this title, or section 101 of the 
Housing and Urban Development Act of 1965, and projects insured under 
this chapter.
    1979--Subsec. (d)(2). Pub. L. 96-153 substituted ``assure for any 
such tenant (who continues to meet applicable qualification standards) 
the right'' for ``seek to assure the maximum opportunity for any such 
tenant''.


                               Regulations

    Section 101(f) of Pub. L. 103-233 provided that: ``The Secretary 
shall issue interim regulations necessary to implement the amendments 
made by subsections (b) through (d) [amending this section and sections 
1437d and 1437f of Title 42, The Public Health and Welfare] not later 
than 90 days after the date of the enactment of this Act [Apr. 11, 
1994]. Such interim regulations shall take effect upon issuance and 
invite public comment on the interim regulations. The Secretary shall 
issue final regulations to implement such amendments after opportunity 
for such public comment, but not later than 12 months after the date of 
issuance of such interim regulations.''


                     Multifamily Housing Disposition

    Section 101(a) of Pub. L. 103-233 provided that: ``The Congress 
finds that--
        ``(1) the portfolio of multifamily housing project mortgages 
    insured by the FHA is severely troubled and at risk of default, 
    requiring the Secretary to increase loss reserves from 
    $5,500,000,000 in 1991 to $11,900,000,000 in 1992 to cover estimated 
    future losses;
        ``(2) the inventory of multifamily housing projects owned by the 
    Secretary has more than quadrupled since 1989, and, by the end of 
    1994, may exceed 69,000 units;
        ``(3) the cost to the Federal Government of owning and 
    maintaining multifamily housing projects escalated to $288,000,000 
    in fiscal year 1993;
        ``(4) the inventory of multifamily housing projects subject to 
    mortgages held by the Secretary has increased dramatically, to more 
    than 2,400 mortgages, and approximately half of these mortgages, 
    with approximately 219,000 units, are delinquent;
        ``(5) the inventory of insured and formerly insured multifamily 
    housing projects is deteriorating, potentially endangering tenants 
    and neighborhoods; and
        ``(6) the current statutory framework governing the disposition 
    of multifamily housing projects effectively impedes the Government's 
    ability to dispose of properties, protect tenants, and ensure that 
    projects are maintained over time.''
    Section 184 of Pub. L. 100-242, as amended by Pub. L. 101-625, title 
V, Sec. 580, Nov. 28, 1990, 104 Stat. 4245, provided for establishment 
of demonstration program for multifamily housing disposition 
partnerships, together with requirements relating to participation by 
State housing finance agencies in sale of such housing and cooperation 
between Secretary of Housing and Urban Development and such agencies, as 
well as termination of such program at end of Sept. 30, 1991, with 
certain exceptions, with report to Congress required to be submitted by 
Secretary not later than 6 months after Sept. 30, 1991, prior to repeal 
by Pub. L. 103-233, title I, Sec. 102, Apr. 11, 1994, 108 Stat. 358.

                  Section Referred to in Other Sections

    This section is referred to in sections 1713, 1715z-1a, 1715z-11a, 
1735f-19, 1735f-20, 3706, 4102 of this title; title 42 section 12877.



chanrobles.com





ChanRobles Legal Resources:

ChanRobles On-Line Bar Review

ChanRobles Internet Bar Review : www.chanroblesbar.com

ChanRobles MCLE On-line

ChanRobles Lawnet Inc. - ChanRobles MCLE On-line : www.chanroblesmcleonline.com