Page:United States Statutes at Large Volume 110 Part 4.djvu/53

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PUBLIC LAW 104-204—SEPT. 26, 1996 110 STAT. 2899 (B) utilizing section 8 rental assistance, while taking into account the capital needs of the projects and the need for adequate rental assistance to support the low- and very low-income families residing in such projects; and (C) preserving low-income rental housing affordability and availability while reducing the long-term cost of section 8 rental assistance. (c) GOALS.— (1) IN GENERAL. — The Secretary shall carry out the demonstration program in a manner that will protect the financial interests of the Federal Government through debt restructuring and subsidy reduction and, in the least costly fashion, address the goals of— (A) maintaining existing affordable housing stock in a decent, safe, and sanitary condition; (B) minimizing the involuntary displacement of tenants; (C) taking into account housing market conditions; (D) encouraging responsible ownership and management of property; (E) minimizing any adverse income tax impact on property owners; and (F) minimizing any adverse impacts on residential neighborhoods and local communities. (2) BALANCE OF COMPETING GOALS.—In determining the manner in which a mortgage is to be restructured or a subsidy reduced under this subsection, the Secretary may bEdance competing goals relating to individual projects in a manner that will further the purposes of this section. (d) PARTICIPATION ARRANGEMENTS. — (1) IN GENERAL.—In carrying out the demonstration program, the Secretary may enter into participation arrangements with designees, under which the Secretary may provide for the assumption by designees (by delegation, by contract, or otherwise) of some or all of the functions, obligations, responsibilities and benefits of the Secretary. (2) DESIGNEES. —In entering into any arrangement under this subsection, the Secretary shall select state housing finance agencies, housing agencies or nonprofits (separately or in conjunction with each other) to act as designees to the extent such agencies are determined to be qualified by the Secretary. In locations where there is no qualified State housing finance agency, housing agency or nonprofit to act as a designee, the Secretary may act as a designee. Each participation arrangement entered into under this subsection shall include a designee as the primary partner. Any organization selected by the Secretary under this section shall have a long-term record of service in providing low-income housing and meet standards of fiscal responsibility, as determined by the Secretary. (3) DESIGNEE PARTNERSHIPS.— For purposes of any participation arrangement under this subsection, designees are encouraged to develop partnerships with each other, and to contract or subcontract with other entities, including— (A) public housing agencies; (B) financial institutions; (C) mortgage servicers; (D) nonprofit and for-profit housing organizations;