Page:United States Statutes at Large Volume 108 Part 1.djvu/388
108 STAT. 362 PUBLIC LAW 103-233—APR. 11, 1994 Reports. Reports. 12 USC 1715z-la note. Federal Register, publication. Effective date. Regulations. (E) assess the ability of the FHA to manage these programs; and (F) make recommendations for any necessary changes, (g) RISK ASSESSMENT. — (1) SPECIAL RISK INSURANCE FUND.— Section 238(c) of the National Housing Act (12 U.S.C. 1715z-3(c)) is amended by adding at the end the following new paragraph: "(3) The Secretary shall undertake an annual assessment of the risks associated with each of the insurance programs comprising the Special Risk Insurance Fund, and shall present findings from such review to the Congress in the FHA Annual Management Report.". (2) GENERAL INSURANCE FUND.— Section 519 of the National Housing Act (12 U.S.C. 1735c) is amended by adding at the end the following new subsection: "(g) RISK ASSESSMENT.— The Secretary shall undertake an annual assessment of the risks associated with each of the insurance programs comprising the General Insurance Fund, and shall present findings from such review to the Congress in the FHA Annual Management Report.". (h) ALTERNATIVE USES FOR PREVENTION OF DEFAULT.— (1) IN GENERAL. — Subject to notice to and comment by existing tenants, to prevent the imminent default of a multifamily housing project subject to a mortgage insured under title II of the National Housing Act, the Secretary may authorize the mortgagor to use the project for purposes not contemplated by or permitted under the regulatory agreement, if— (A) such other uses are acceptable to the Secretary; (B) such other uses would be otherwise insurable under title II of the National Housing Act; (C) the outstanding principal balance on the mortgage covering such project is not increased; (D) any financial benefit accruing to the mortgagor shall, subject to the discretion of the Secretary, be applied to project reserves or project rehabilitation; and , (E) such other use serves a public purpose. (2) DISPLACEMENT PROTECTION.— The Secretary may take actions under paragraph (1) only if— (A) tenant-based rental assistance under section 8 of the United States Housing Act of 1937 is made available to each eligible family residing in the project that is displaced as a result of such actions; and (B) the Secretary determines that sufficient habitable, affordable (as such term is defined in section 203(b) of the Housing and Community Development Amendments of 1978) rental housing is available in the market area in which the project is located to ensure use of such assistance. (3) IMPLEMENTATION.—The Secretary shall, by notice published in the Federal Register, which shall take effect upon publication, establish such requirements as may be necessary to implement the amendments made by this subsection. The notice shall invite public comments and, not later than 12 months after the date on which the notice is published, the Secretary shall issue final regulations based on the initial notice, taking into account any public comments received.