Page:United States Statutes at Large Volume 110 Part 4.djvu/54

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110 STAT. 2900 PUBLIC LAW 104-204—SEPT. 26, 1996 (E) the Federal National Mortgage Association; (F) the Federal Home Loan Mortgage Corporation; (G) Federal Home Loan Banks; and (H) other State or local mortgage insurance companies or bank lending consortia. (e) LONG-TERM AFFORDABILITY.— (1) IN GENERAL.— After the renewal of a section 8 contract pursuant to a restructuring under this section, the owner shall accept each offer to renew the section 8 contract, for a period of 20 years from the date of the renewal under the demonstration, if the offer to renew is on terms and conditions, as agreed to by the Secretary or designee and the owner under a restructuring. (2) AFFORDABILITY REQUIREMENTS.— Except as otherwise provided by the Secretary, in exchange for any mortgage restructuring under this section, a project shall remain affordable for a period of not less than 20 years. Affordability requirements shall be determined in accordance with guidelines established by the Secretary or designee. The Secretary or designee may waive these requirements for good cause. (f) PROCEDURES. — (1) NOTICE OF PARTICIPATION IN DEMONSTRATION. — Not later than 45 days before the date of expiration of an expiring contract (or such later date, as determined by the Secretary, for good cause), the owner of the multifamily housing project covered by that expiring contract shall notify the Secretary or designee and the residents of the owner's intent to participate in the demonstration program. (2) DEMONSTRATION CONTRACT. — Upon receipt of a notice under paragraph (1), the owner and the Secretary or designee shall enter into a demonstration contract, which shall provide for initial section 8 project-based rents at the same rent levels as those under the expiring contract or, if practical, the budgetbased rent to cover debt service, reasonable operating expenses (including reasonable and appropriate services), and a reasonable return to the owner, as determined solely by the Secretary. The demonstration contract shall be for the minimum term necesssiry for the rents and mortgages of the multifamily housing project to be restructured under the demonstration program, but shall not be for a period of time to exceed 180 days, unless extended for good cause by the Secretary. (g) PROJECT-BASED SECTION 8.— The Secretary shall renew all expiring contracts under the demonstration as section 8 projectbased contracts, for a period of time not to exceed one year, unless otherwise provided under subsection (h). (h) DEMONSTRATION ACTIONS.— (1) DEMONSTRATION ACTIONS. — For purposes of carrying out the demonstration program, and in order to ensure that contract rights are not abrogated, subject to such third party consents as are necessary (if any), including consent by the Government National Mortgage Association if it owns a mortgage insured by the Secretary, consent by an issuer under the mortgagebacked securities program of the Association, subject to the responsibilities of the issuer to its security holders and the Association under such program, and consent by parties to any contractual agreement which the Secretary proposes to modify or discontinue, the Secretary or, except with respect