Page:United States Statutes at Large Volume 113 Part 2.djvu/90

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113 STAT. 1110 PUBLIC LAW 106-74—OCT. 20, 1999 "SEC. 524. RENEWAL OF EXPIRING PROJECT-BASED SECTION 8 CON- TRACTS. "(a) IN GENERAL.— "(1) RENEWAL. — Subject to paragraph (2), upon termination or expiration of a contract for project-based assistance under section 8 for a multifamily housing project (and notwithstanding section 8(v) of the United States Housing Act of 1937 for loan management assistance), the Secretary shall, at the request of the owner of the project and to the extent sufficient amounts are made available in appropriation Acts, use amounts available for the renewal of assistance under section 8 of such Act to Erovide such assistance for the project. The assistance shall e provided under a contract having such terms and conditions as the Secretary considers appropriate, subject to the requirements of this section. This section shall not require contract renewal for a project that is eligible under this subtitle for a mortgage restructuring and rental assistance sufficiency plan, if there is no approved plan for the project and the Secretary determines that such an approved plan is necessary. "(2) PROHIBITION ON RENEWAL. — Notwithstanding part 24 of title 24 of the Code of Federal Regulations, the Secretary may elect not to renew assistance for a project otherwise required to be renewed under paragraph (1) or provide comparable benefits under paragraph (1) or (2) of subsection (e) for a project described in either such paragraph, if the Secretary determines that a violation under paragraphs (1) through (4) of section 516(a) has occurred with respect to the project. For purposes of such a determination, the provisions of section 516 shall apply to a project under this section in the same manner and to the same extent that the provisions of such section apply to eligible multifamily housing projects, except that the Secretary shall make the determination under section 516(a)(4). " (3) CONTRACT TERM FOR MARK-UP-TO-MARKET CON- TRACTS.—In the case of an expiring or terminating contract that has rent levels less than comparable market rents for the market area, if the rent levels under the renewal contract under this section are equal to comparable market rents for the market area, the contract shall have a term of not less than 5 years, subject to the availability of sufficient amounts in appropriation Acts. "(4) RENEWAL RENTS.— Except as provided in subsection (b), the contract for assistance shall provide assistance at the following rent levels: "(A) MARKET RENTS. —At the request of the owner of the project, at rent levels equal to the lesser of comparable market rents for the market area or 150 percent of the fair market rents, in the case only of a project that— "(i) has rent levels under the expiring or terminating contract that do not exceed such comparable market rents; "(ii) does not have a low- and moderate-income use restriction that can not be eliminated by unilateral action by the owner; "(iii) is decent, safe, and sanitary housing, as determined by the Secretary; "(iv) is not—