Page:United States Statutes at Large Volume 108 Part 1.djvu/380

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108 STAT. 354 PUBLIC LAW 103-233—APR. 11, 1994 Act of 1937 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 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. "(i) RIGHT OF FIRST REFUSAL FOR LOCAL AND STATE GOVERN- MENT AGENCIES. — "(1) NOTIFICATION.—Not later than 30 days afl;er 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