103 STAT. 2058 PUBLIC LAW 101-235—DEC. 15, 1989 42 USC 1437f note. Appropriation authorization. Regulations. 42 USC 1437f note. fiscal year 1980, minus the sum of the rental payments the Secretary or appropriate State sigency actually approved for those years. The method provided by this subsection shall be the exclusive method by which retroactive payments, whether or not requested, may be made for projects subject to this subsec- • tion for the period from fiscal year 1980 until the regulations issued under subsection (e) take effect. For purposes of this paragraph, "debt service" shall include interest, principal, and mortage insurance premium if any. (2) APPLICABILITY. — (A) IN GENERAL.— Subsection (a) shall apply with respect to any use of comparability studies referred to in such subsection occurring before the effective date of the regula- V tions issued under subsection (e). (B) FINAL LITIGATION. —Subsection (a) shall not apply to any project with respect to which litigation regarding the authority of the Secretary to use comparability studies to limit rental adjustments under section 8(c)(2) of the United States Housing Act of 1937 has resulted in a iudgment before the effective date of this Act that is finsJ and not appealable (including any settlement agreement). (b) 3-YEAR PAYMENTS.— The Secretary shall provide the amounts under subsection (a) over the 8-year period beginning on the effec- tive date of the regulations issued under subsection (e). The Sec- retary shall provide the pa3rment3 authorized under subsection (a) only to the extent approved in subsequent appropriations Acts. There are authorized to be appropriated such sums as may be necessary for this purpose. (c) COMPARABILITY SruDiES.^—Section 8(c)(2)(C) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(C)) is amended by inserting after the period at the end of the first sentence the following: "In implementing the limitation established under the preceding sen- tence, the Secretary shall establish regulations for conducting com- parability studies for projects where the Secretary has reeison to believe that the application of the formuladjustments under subparagraph (A) would result in such material differences. "Hie Secreta^ shall conduct such studies upon the request of any owner of any project, or as the Secretary determines to be appropriate by establishing, to the extent practicable, a modified annual adjtist- ment factor for such market area, as the Secretary shall designate, that is geographically smaller than the applicable hotising area used for the establishment of the annual adjustment factor under subparagraph (A). The Secretary shall establish such modified annual adjustment factor on the basis of the results of a study conducted by the Secretary of the rents charged, and any change in such rents over the previous year, for assisted units ana unassisted units of similar quality, type, and age in the smaller market area. Where the Secretary determines that such modified annual adjust- ment factor cannot be established or that such factor when applied to a particular project would result in material differences between the rents charged for assisted units and unassisted units of similar quality, type, and age in the same market area, the Secretary may apply an alternative methodol(^^ for conducting comparability studies in order to establish rents that are not materially different from rents charged for comparable unassisted units.". (d) DETERMINATION OF CONTRACT RENT. —(1) The Secretary shall upon the request of the project owner, make a one-time determina-
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