Page:United States Statutes at Large Volume 110 Part 4.djvu/55

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PUBLIC LAW 104-204—SEPT. 26, 1996 110 STAT. 2901 to subparagraph (B), designee, subject to the funding Hmitation in subsection (1), shall take not less than one of the actions specified in subparagraphs (G), (H), and (I) and may take any of the following actions: (A) REMOVAL OF RESTRICTIONS.— (i) IN GENERAL.— Consistent with the purposes of this section, subject to the agreement of the owner of the project and after consultation with the tenants of the project, the Secretary or designee may remove, relinquish, extinguish, modify, or agree to the removal of any mortgage, regulatory agreement, project-based assistance contract, use agreement, or restriction that had been imposed or required by the Secretary, including restrictions on distributions of income which the Secretary or designee determines would interfere with the ability of the project to operate without abovemarket rents. (ii) ACCUMULATED RESIDUAL RECEIPTS. — The Secretary or designee may require an owner of a property assisted under the section 8 new construction/substantial rehabilitation program under the United States Housing Act of 1937 to apply any accumulated residual receipts toward effecting the purposes of this section. (B) REINSURANCE.— With respect to not more than 5,000 units within the demonstration during fiscal year 1997, the Secretary may enter into contracts to purchase reinsurance, or enter into participations or otherwise transfer economic interest in contracts of insurance or in the premiums paid, or due to be paid, on such insurance, on such terms and conditions as the Secretary may determine. Any contract entered into under this paragraph shall require that any associated units be maintained as lowincome units for the life of the mortgage, unless waived by the Secretary for good cause. (C) PARTICIPATION BY THIRD PARTIES.— The Secretary or designee may enter into such agreements, provide such concessions, incur such costs, make such grants (including grants to cover all or a portion of the rehabilitation costs for a project) and other payments, and provide other valuable consideration as may reasonably be necessary for owners, lenders, servicers, third parties, and other entities to participate in the demonstration program. The Secretary may establish performance incentives for designees. (D) SECTION 8 ADMINISTRATIVE FEES. —Notwithstanding any other provision of law, the Secretary may make fees available from the section 8 contract renewal appropriation to a designee for contract administration under section 8 of the United States Housing Act of 1937 for purposes of any contract restructured or renewed under the demonstration program. (E) FULL OR PARTIAL PAYMENT OF CLAIM. — Notwithstanding any other provision of law, the Secretary may make a full payment of claim or partial payment of claim prior to default. (F) CREDIT ENHANCEMENT.— (i) IN GENERAL.— The Secretary or designee may provide FHA multifamily mortgage insurance, reinsur-