184 
to accommodate the financing and other requirements re-
lated to rehabilitating or constructing the project or 
projects to which the assistance is transferred, to ensure 
that such project or projects meet the standards under 
subsection (c). 
(c) The transfer authorized in subsection (a) is sub-
ject to the following conditions: 
(1) NUMBER AND BEDROOM SIZE OF UNITS.— 
(A) For occupied units in the transferring 
project, the number of low-income and very low- 
income units and the configuration (i.e., bed-
room size) provided by the transferring project 
shall be no less than when transferred to the re-
ceiving project or projects and the net dollar 
amount of Federal assistance provided to the 
transferring project shall remain the same in 
the receiving project or projects. 
(B) For unoccupied units in the transfer-
ring project, the Secretary may authorize a re-
duction in the number of dwelling units in the 
receiving project or projects to allow for a re-
configuration of bedroom sizes to meet current 
market demands, as determined by the Sec-
retary and provided there is no increase in the 
project-based assistance budget authority. 
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(2) The transferring project shall, as deter-
mined by the Secretary, be either physically obsolete 
or economically nonviable. 
(3) The receiving project or projects shall meet 
or exceed applicable physical standards established 
by the Secretary. 
(4) The owner or mortgagor of the transferring 
project shall notify and consult with the tenants re-
siding in the transferring project and provide a cer-
tification of approval by all appropriate local govern-
mental officials. 
(5) The tenants of the transferring project who 
remain eligible for assistance to be provided by the 
receiving project or projects shall not be required to 
vacate their units in the transferring project or 
projects until new units in the receiving project are 
available for occupancy. 
(6) The Secretary determines that the transfer 
is in the best interest of the tenants. 
(7) If either the transferring project or the re-
ceiving project or projects meets the condition speci-
fied in subsection (d)(2)(A), any lien on the receiv-
ing project resulting from additional financing ob-
tained by the owner shall be subordinate to any 
FHA-insured mortgage lien transferred to, or placed 
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pamtmann on DSKBC07HB2PROD with BILLS
186 
on, such project by the Secretary, except that the 
Secretary may waive this requirement upon deter-
mination that such a waiver is necessary to facilitate 
the financing of acquisition, construction, and/or re-
habilitation of the receiving project or projects. 
(8) If the transferring project meets the re-
quirements of subsection (d)(2), the owner or mort-
gagor of the receiving project or projects shall exe-
cute and record either a continuation of the existing 
use agreement or a new use agreement for the 
project, in either case, any use restrictions in such 
agreement are of no lesser duration than the exist-
ing use restrictions. 
(9) The transfer does not increase the cost (as 
defined in section 502 of the Congressional Budget 
Act of 1974(2 U.S.C. 661a)) of any FHA-insured 
mortgage, except to the extent that appropriations 
are provided in advance for the amount of any such 
increased cost. 
(d) For purposes of this section— 
(1) the terms ‘‘low-income’’ and ‘‘very low-in-
come’’ shall have the meanings provided by the stat-
ute and/or regulations governing the program under 
which the project is insured or assisted; 
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187 
(2) the term ‘‘multifamily housing project’’ 
means— 
(A) housing that is subject to a mortgage 
insured under the National Housing Act; 
(B) housing that has project-based assist-
ance attached to the structure including 
projects undergoing mark to market debt re-
structuring under the Multifamily Assisted 
Housing Reform and Affordability Housing Act; 
(C) housing that is assisted under section 
202 of the Housing Act of 1959 (12 U.S.C. 
1701q); 
(D) housing that is assisted under section 
202 of the Housing Act of 1959 (12 U.S.C. 
1701q), as such section existed before the en-
actment of the Cranston-Gonzales National Af-
fordable Housing Act; 
(E) housing that is assisted under section 
811 of the Cranston-Gonzales National Afford-
able Housing Act (42 U.S.C. 8013); or 
(F) housing or vacant land that is subject 
to a use agreement; 
(3) 
the 
term 
‘‘project-based 
assistance’’ 
means— 
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188 
(A) assistance provided under section 8(b) 
of the United States Housing Act of 1937 (42 
U.S.C. 1437f(b)); 
(B) assistance for housing constructed or 
substantially rehabilitated pursuant to assist-
ance provided under section 8(b)(2) of such Act 
(as such section existed immediately before Oc-
tober 1, 1983); 
(C) rent supplement payments under sec-
tion 101 of the Housing and Urban Develop-
ment Act of 1965 (12 U.S.C. 1701s); 
(D) interest reduction payments under sec-
tion 236 and/or additional assistance payments 
under section 236(f)(2) of the National Hous-
ing Act (12 U.S.C. 1715z–(f)(2)); 
(E) assistance payments made under sec-
tion 202(c)(2) of the Housing Act of 1959 (12 
U.S.C. 1701q(c)(2)); and 
(F) assistance payments made under sec-
tion 811(d)(2) of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 
8013(d)(2)); 
(4) the term ‘‘receiving project or projects’’ 
means the multifamily housing project or projects to 
which some or all of the project-based assistance, 
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debt, and statutorily required low-income and very 
low-income use restrictions are to be transferred; 
(5) the term ‘‘transferring project’’ means the 
multifamily housing project which is transferring 
some or all of the project-based assistance, debt, and 
the statutorily required low-income and very low-in-
come use restrictions to the receiving project or 
projects; and 
(6) the term ‘‘Secretary’’ means the Secretary 
of Housing and Urban Development. 
(e) RESEARCH REPORT.—The Secretary shall con-
duct an evaluation of the transfer authority under this sec-
tion, including the effect of such transfers on the oper-
ational efficiency, contract rents, physical and financial 
conditions, and long-term preservation of the affected 
properties. 
SEC. 210. (a) No assistance shall be provided under 
section 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f) to any individual who— 
(1) is enrolled as a student at an institution of 
higher education (as defined under section 102 of 
the Higher Education Act of 1965 (20 U.S.C. 
1002)); 
(2) is under 24 years of age; 
(3) is not a veteran; 
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