123STA T . 21 9PUBLIC LA W 111 –5—FE B.1 7, 2 0 09 theda te ofs a l eofthe uni ttoa p u rc haser w ho will occup y the unit as a pri m ary residence , su bj ect to the receipt by the tenant of the 90- day notice under this para g raph
or (B) without a lease or with a lease terminable at will under S tate law, subject to the receipt by the tenant of the 90-day notice under this paragraph, e x cept that nothing in this paragraph shall affect the re q uirements for termination of any F ederal- or State-subsidi z ed tenancy or of any State or local law that pro v ides longer time periods or other additional protections for tenants
- Provide
d fu r th er, T hat, for pur- poses of this paragraph, a lease or tenancy shall be considered bona fide only if: ( 1 ) the mortgagor under the contract is not the tenant; ( 2 ) the lease or tenancy was the result of an arms- length transaction; and ( 3 ) the lease or tenancy requires the receipt of rent that is not substantially less than fair mar k et rent for the property: Provided further, That the recipient of any grant or loan from amounts made available under this heading or, after the date of enactment, under division B, title I II of the H ousing and E conomic R ecovery A ct of 200 8 ( P ublic L aw 110 – 289) may not refuse to lease a dwelling unit in housing assisted with such loan or grant to a holder of a voucher or certificate of eligibility under section 8 of the U nited States Housing Act of 193 7 ( 4 2 U . S. C . 1437f) because of the status of the prospective tenant as such a holder: Provided further, That in the case of any qualified foreclosed housing for which funds made available under this heading or, after the date of enactment, under division B, title III of the Housing and Economic Recovery Act of 2008 (Public Law 110–289) are used and in which a recipient of assistance under section 8(o) of the U.S. Housing Act of 1937 resides at the time of foreclosure, the initial successor in interest shall be subject to the lease and to the housing assistance payments contract for the occupied unit: Provided further, That vacating the property prior to sale shall not constitute good cause for termination of the tenancy unless the property is unmarketable while occupied or unless the owner or subsequent purchaser desires the unit for personal or family use: Provided further, That if a public housing agency is unable to make payments under the contract to the immediate successor in interest after foreclosures, due to (1) an action or inaction by the successor in interest, including the rejec- tion of payments or the failure of the successor to maintain the unit in compliance with section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C.1437f) or (2) an inability to identify the successor, the agency may use funds that would have been used to pay the rental amount on behalf of the family — (i) to pay for utilities that are the responsibility of the owner under the lease or applicable law, after taking reasonable steps to notify the owner that it intends to make payments to a utility provider in lieu of payments to the owner, except prior notification shall not be required in any case in which the unit will be or has been rendered uninhabitable due to the termination or threat of termination of service, in which case the public housing agency shall notify the owner within a reasonable time after making such payment; or (ii) for the family ’ s reasonable moving costs, including security deposit costs: Provided further , That this paragraph shall not pre- empt any Federal, State or local law that provides more protections for tenants: Provided further, That of the funds made available under this heading, up to 1 percent shall be available for staffing, training, technical assistance, technology, monitoring, travel, 42USC5301note. Cont rac t s .
