Page:United States Statutes at Large Volume 111 Part 2.djvu/319

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PUBLIC LAW 105-65—OCT. 27, 1997 111 STAT. 1399 of the United States Housing Act of 1937, the maximum monthly rent under the contract (plus any amount allowed for utilities) shall be such reasonable rent for the unit. With respect to the voucher program under section 8(o) of the United States Housing Act of 1937, the payment standard shall be deemed to be such reasonable rent for the unit. (5) INAPPLICABILITY OF CERTAIN PROVISION. — If a participating administrative entity approves renewal with project-based assistance under this subsection, section 8(d)(2) of the United States Housing Act of 1937 shall not apply. SEC. 516. PROHIBITION ON RESTRUCTURING. 42 USC 1437f (a) PROHIBITION ON RESTRUCTURING. —The Secretary may elect not to consider any mortgage restructuring and rental assistance sufficiency plan or request for contract renewal if the Secretary or the participating administrative entity determines that— (1)(A) the owner or purchaser of the project has engaged in material adverse financial or managerial actions or omissions with regard to such project; or (B) the owner or purchaser of the project has engaged in material adverse financial or managerial actions or omissions with regard to other projects of such owner or purchaser that are federally assisted or financed with a loan from, or mortgage insured or guaranteed by, an agency of the Federal Government; (2) material adverse financial or managerial actions or omissions include— (A) materially violating any Federal, State, or local law or regulation with regard to this project or any other federally assisted project, after receipt of notice and an opportunity to cure; (B) materially breaching a contract for assistance under section 8 of the United States Housing Act of 1937, after receipt of notice and an opportunity to cure; (C) materially violating any applicable regulatory or other agreement with the Secretary or a participating administrative entity, after receipt of notice and an opportunity to cure; (D) repeatedly and materially violating any Federal, State, or local law or regulation with regard to the project or any other federally assisted project; (E) repeatedly and materially breaching a contract for assistance under section 8 of the United States Housing Act of 1937; (F) repeatedly and materially violating any applicable regulatory or other agreement with the Secretary or a participating administrative entity; (G) repeatedly failing to make mortgage payments at times when project income was sufficient to maintain and operate the property; (H) materially failing to maintain the property according to housing quality standards after receipt of notice and a reasonable opportunity to cure; or (I) committing any actions or omissions that would warrant suspension or debarment by the Secretary;