Page:United States Statutes at Large Volume 113 Part 2.djvu/93

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PUBLIC LAW 106-74—OCT. 20, 1999 113 STAT. 1113 "(C) MARKET RENTS.— Comparable market rents for the market area. "(c) RENT ADJUSTMENTS AFTER RENEWAL OF CONTRACT.— "(1) REQUIRED. —After the initial renewal of a contract for assistance under section 8 of the United States Housing Act of 1937 pursuant to subsection (a), (b)(1), or (e)(2), the Secretary shall annually adjust the rents using an operating cost adjustment factor established by the Secretary (which shall not result in a negative adjustment) or, upon the request of the owner and subject to approval of the Secretary, on a budget basis. In the case of projects with contracts renewed pursuant to subsection (a) or pursuant to subsection (e)(2) at rent levels equal to comparable market rents for the market area, at the expiration of each 5-year period, the Secretary shall compare existing rents with comparable market rents for the market area and may make any adjustments in the rent necessary to maintain the contract rents at a level not greater than comparable market rents or to increase rents to comparable market rents. "(2) DISCRETIONARY.— In addition to review and adjustment required under paragraph (1), in the case of projects with contracts renewed pursuant to subsection (a) or pursuant to subsection (e)(2) at rent levels equal to comparable market rents for the market area, the Secretary may, at the discretion of the Secretary but only once within each 5-year period referred to in paragraph (1), conduct a comparison of rents for a project and adjust the rents accordingly to maintain the contract rents at a level not greater than comparable market rents or to increase rents to comparable market rents. " (d) ENHANCED VOUCHERS UPON CONTRACT EXPIRATION.— "(1) IN GENERAL.— In the case of a contract for projectbased assistance under section 8 for a covered project that is not renewed under subsection (a) or (b) of this section (or any other authority), to the extent that amounts for assistance under this subsection are provided in advance in appropriation Acts, upon the date of the expiration of such contract the Secretary shall make enhanced voucher assistance under section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)) available on behalf of each low-income family who, upon the date of such expiration, is residing in an assisted dwelling unit in the covered project. "(2) DEFINITIONS. —For purposes of this subsection, the following definitions shall apply: "(A) ASSISTED DWELLING UNIT.—The term 'assisted dwelling unit' means a dwelling unit that— "(i) is in a covered project; and "(ii) is covered by rental assistance provided under the contract for project-based assistance for the covered project. "(B) COVERED PROJECT.— The term 'covered project' means any housing that— "(i) consists of more than four dwelling units; "(ii) is covered in whole or in part by a contract for project-based assistance under— "(I) the new construction or substantial rehabilitation program under section 8(b)(2) of the