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cept for a person over the age of 23 with dependent chil-
dren. 
SEC. 216. (a) Section 255(g) of the National Housing 
Act (12 U.S.C. 1715z–20) is amended by striking the first 
sentence. 
SEC. 217. Notwithstanding any other provision of 
law, in fiscal year 2010, in managing and disposing of any 
multifamily property that is owned or has a mortgage held 
by the Secretary of Housing and Urban Development, the 
Secretary shall maintain any rental assistance payments 
under section 8 of the United States Housing Act of 1937 
and other programs that are attached to any dwelling 
units in the property. To the extent the Secretary deter-
mines, in consultation with the tenants and the local gov-
ernment, that such a multifamily property owned or held 
by the Secretary is not feasible for continued rental assist-
ance payments under such section 8 or other programs, 
based on consideration of: (1) the costs of rehabilitating 
and operating the property and all available Federal, 
State, and local resources, including rent adjustments 
under section 524 of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (‘‘MAHRAA’’); and 
(2) environmental conditions that cannot be remedied in 
a cost-effective fashion, the Secretary may, in consultation 
with the tenants of that property, contract for project- 
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based rental assistance payments with an owner or owners 
of other existing housing properties, or provide other rent-
al assistance. The Secretary shall also take appropriate 
steps to ensure that project-based contracts remain in ef-
fect prior to foreclosure, subject to the exercise of contrac-
tual abatement remedies to assist relocation of tenants for 
imminent major threats to health and safety. After dis-
position of any multifamily property described under this 
section, the contract and allowable rent levels on such 
properties shall be subject to the requirements under sec-
tion 524 of MAHRAA. 
SEC. 218. During fiscal year 2011, in the provision 
of rental assistance under section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)) in con-
nection with a program to demonstrate the economy and 
effectiveness of providing such assistance for use in as-
sisted living facilities that is carried out in the counties 
of the State of Michigan notwithstanding paragraphs (3) 
and (18)(B)(iii) of such section 8(o), a family residing in 
an assisted living facility in any such county, on behalf 
of which a public housing agency provides assistance pur-
suant to section 8(o)(18) of such Act, may be required, 
at the time the family initially receives such assistance, 
to pay rent in an amount exceeding 40 percent of the 
monthly adjusted income of the family by such a percent-
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age or amount as the Secretary of Housing and Urban 
Development determines to be appropriate. 
SEC. 219. The Secretary of Housing and Urban De-
velopment shall report quarterly to the House of Rep-
resentatives and Senate Committees on Appropriations on 
HUD’s use of all sole source contracts, including terms 
of the contracts, cost, and a substantive rationale for 
using a sole source contract. 
SEC. 220. Notwithstanding any other provision of 
law, the recipient of a grant under section 202b of the 
Housing Act of 1959 (12 U.S.C. 1701q) after December 
26, 2000, in accordance with the unnumbered paragraph 
at the end of section 202(b) of such Act, may, at its op-
tion, establish a single-asset nonprofit entity to own the 
project and may lend the grant funds to such entity, which 
may be a private nonprofit organization described in sec-
tion 831 of the American Homeownership and Economic 
Opportunity Act of 2000. 
SEC. 221. (a) The amounts provided under the sub-
heading ‘‘Program Account’’ under the heading ‘‘Commu-
nity Development Loan Guarantees’’ may be used to guar-
antee, or make commitments to guarantee, notes, or other 
obligations issued by any State on behalf of non-entitle-
ment communities in the State in accordance with the re-
quirements of section 108 of the Housing and Community 
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Development Act of 1974 in fiscal year 2011 and subse-
quent years: Provided, That, any State receiving such a 
guarantee or commitment shall distribute all funds subject 
to such guarantee to the units of general local government 
in non-entitlement areas that received the commitment. 
(b) Not later than 60 days after the date of enact-
ment of this Act, the Secretary of Housing and Urban 
Development shall promulgate regulations governing the 
administration of the funds described under subsection 
(a). 
SEC. 222. Section 24 of the United States Housing 
Act of 1937 (42 U.S.C. 1437v) is amended— 
(1) in subsection (m)(1), by striking ‘‘fiscal 
year’’ and all that follows through the period at the 
end and inserting ‘‘fiscal year 2011.’’; and 
(2) in subsection (o), by striking ‘‘September’’ 
and all that follows through the period at the end 
and inserting ‘‘September 30, 2011.’’. 
SEC. 223. Public housing agencies that own and oper-
ate 400 or fewer public housing units may elect to be ex-
empt from any asset management requirement imposed by 
the Secretary of Housing and Urban Development in con-
nection with the operating fund rule: Provided, That an 
agency seeking a discontinuance of a reduction of subsidy 
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under the operating fund formula shall not be exempt 
from asset management requirements. 
SEC. 224. With respect to the use of amounts pro-
vided in this Act and in future Acts for the operation, cap-
ital improvement and management of public housing as 
authorized by sections 9(d) and 9(e) of the United States 
Housing Act of 1937 (42 U.S.C. 1437g(d) and (e)), the 
Secretary shall not impose any requirement or guideline 
relating to asset management that restricts or limits in 
any way the use of capital funds for central office costs 
pursuant to section 9(g)(1) or 9(g)(2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437g(g)(1), (2)): Pro-
vided, That a public housing agency may not use capital 
funds authorized under section 9(d) for activities that are 
eligible under section 9(e) for assistance with amounts 
from the operating fund in excess of the amounts per-
mitted under section 9(g)(1) or 9(g)(2). 
SEC. 225. No official or employee of the Department 
of Housing and Urban Development shall be designated 
as an allotment holder unless the Office of the Chief Fi-
nancial Officer has determined that such allotment holder 
has implemented an adequate system of funds control and 
has received training in funds control procedures and di-
rectives. The Chief Financial Officer shall ensure that, not 
later than 90 days after the date of enactment of this Act, 
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there is a trained allotment holder shall be designated for 
each HUD subaccount under the headings ‘‘Executive Di-
rection’’ and heading ‘‘Administration, Operations, and 
Management’’ as well as each account receiving appropria-
tions for ‘‘personnel compensation and benefits’’ within 
the Department of Housing and Urban Development. 
SEC. 226. Payment of attorney fees in program-re-
lated litigation must be paid from individual program of-
fice personnel benefits and compensation funding. The an-
nual budget submission for program office personnel ben-
efit and compensation funding must include program-re-
lated litigation costs for attorney fees as a separate line 
item request. 
SEC. 227. (a) APPROVAL
OF
PREPAYMENT
OF 
DEBT.—Upon request of the project sponsor of a project 
assisted with a loan under section 202 of the Housing Act 
of 1959 (as in effect before the enactment of the Cran-
ston-Gonzalez National Affordable Housing Act), for 
which the Secretary’s consent to prepayment is required, 
the Secretary shall approve the prepayment of any indebt-
edness to the Secretary relating to any remaining principal 
and interest under the loan as part of a prepayment plan 
under which— 
(1) the project sponsor agrees to operate the 
project until the maturity date of the original loan 
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under terms at least as advantageous to existing and 
future tenants as the terms required by the original 
loan agreement or any project-based rental assist-
ance payments contract under section 8 of the 
United States Housing Act of 1937 (or any other 
project-based rental housing assistance programs of 
the Department of Housing and Urban Develop-
ment, including the rent supplement program under 
section 101 of the Housing and Urban Development 
Act of 1965 (12 U.S.C. 1701s)) or any successor 
project-based rental assistance program, except as 
provided by subsection (a)(2)(B); and 
(2) the prepayment may involve refinancing of 
the loan if such refinancing results— 
(A) in a lower interest rate on the prin-
cipal of the loan for the project and in reduc-
tions in debt service related to such loan; or 
(B) in the case of a project that is assisted 
with a loan under such section 202 carrying an 
interest rate of 6 percent or lower, a trans-
action under which— 
(i) the project owner shall address the 
physical needs of the project; 
(ii) the prepayment plan for the trans-
action, including the refinancing, shall 
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meet a cost benefit analysis, as established 
by the Secretary, that the benefit of the 
transaction outweighs the cost of the 
transaction including any increases in rent 
charged to unassisted tenants; 
(iii) the overall cost for providing 
rental assistance under section 8 for the 
project (if any) is not increased, except, 
upon approval by the Secretary to— 
(I) mark-up-to-market contracts 
pursuant to section 524(a)(3) of the 
Multifamily Assisted Housing Reform 
and Affordability Act (42 U.S.C. 
1437f note), as such section is carried 
out by the Secretary for properties 
owned by nonprofit organizations; or 
(II) mark-up-to-budget contracts 
pursuant to section 524(a)(4) of the 
Multifamily Assisted Housing Reform 
and Affordability Act (42 U.S.C. 
1437f note), as such section is carried 
out by the Secretary for properties 
owned by eligible owners (as such 
term is defined in section 202(k) of 
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the Housing Act of 1959 (12 U.S.C. 
1701q(k)); 
(iv) the project owner may charge ten-
ants rent sufficient to meet debt service 
payments and operating cost requirements, 
as approved by the Secretary, if project- 
based rental assistance is not available or 
is insufficient for the debt service and op-
erating cost of the project after refi-
nancing. Such approval by the Secretary— 
(I) shall be the basis for the 
owner to agree to terminate the 
project-based rental assistance con-
tract that is insufficient for the debt 
service and operating cost of the 
project after refinancing; and 
(II) shall be an eligibility event 
for the project for purposes of section 
8(t) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(t)); 
(v) units to be occupied by tenants as-
sisted under section 8(t) of the United 
States Housing Act of 1937 (42 U.S.C. 
1437f(t)) shall, upon termination of the oc-
cupancy of such tenants, become eligible 
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for project-based assistance under section 
8(o)(13) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(13)) without 
regard to the percentage limitations pro-
vided in such section; and 
(vi) there shall be a use agreement of 
20 years from the date of the maturity 
date of the original 202 loan for all units, 
including units to be occupied by tenants 
assisted under section 8(t) of the United 
States Housing Act of 1937 (42 U.S.C. 
1437f(t)). 
SEC. 228. No property identified by the Secretary of 
Housing and Urban Development as surplus Federal prop-
erty for use to assist the homeless shall be made available 
to any homeless group unless the group is a member in 
good standing under any of HUD’s homeless assistance 
programs or is in good standing with any other program 
which receives funds from any other Federal or State 
agency or entity: Provided, That an exception may be 
made for an entity not involved with Federal homeless pro-
grams to use surplus Federal property for the homeless 
only after the Secretary or another responsible Federal 
agency has fully and comprehensively reviewed all relevant 
finances of the entity, the track record of the entity in 
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assisting the homeless, the ability of the entity to manage 
the property, including all costs, the ability of the entity 
to administer homeless programs in a manner that is ef-
fective to meet the needs of the homeless population that 
is expected to use the property and any other related 
issues that demonstrate a commitment to assist the home-
less: Provided further, That the Secretary shall not require 
the entity to have cash in hand in order to demonstrate 
financial ability but may rely on the entity’s prior dem-
onstrated fundraising ability or commitments for in-kind 
donations of goods and services: Provided further, That 
the Secretary shall make all such information and its deci-
sion regarding the award of the surplus property available 
to the committees of jurisdiction, including a full justifica-
tion of the appropriateness of the use of the property to 
assist the homeless as well as the appropriateness of the 
group seeking to obtain the property to use such property 
to assist the homeless: Provided further, That, this section 
shall apply to properties in fiscal years 2010 and 2011 
made available as surplus Federal property for use to as-
sist the homeless. 
SEC. 229. The Secretary of the Department of Hous-
ing and Urban Development is authorized to transfer up 
to 5 percent of funds appropriated for any account under 
this title under the heading ‘‘Personnel Compensation and 
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Benefits’’ to any other account under this title under the 
heading ‘‘Personnel Compensation and Benefits’’ only 
after such transfer has been submitted to, and received 
prior written approval by, the House and Senate Commit-
tees on Appropriations: Provided, That, no appropriation 
for any such account shall be increased or decreased by 
more than 10 percent by all such transfers. 
SEC. 230. Notwithstanding any other provision of 
law, in determining the market value of any multifamily 
real property or multifamily loan for any noncompetitive 
sale to a State or local government, the Secretary shall 
in fiscal year 2011 consider, but not be limited to, industry 
standard appraisal practices, including the cost of repairs 
needed to bring the property into such condition as to sat-
isfy minimum State and local code standards and the cost 
of maintaining the affordability restrictions imposed by 
the Secretary on the multifamily real property or multi-
family loan. 
SEC. 231. The Disaster Housing Assistance Pro-
grams, administered by the Department of Housing and 
Urban Development, shall be considered a ‘‘program of 
the Department of Housing and Urban Development’’ 
under section 904 of the McKinney Act for the purpose 
of income verifications and matching. 
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SEC. 232. Section 203(c)(2)(B) of the National 
Housing Act (12 U.S.C. 1709(c)(2)(B)) is amended to 
read as follows: ‘‘(B) In addition to the premium under 
subparagraph (A), the Secretary may establish and collect 
annual premium payments in an amount not exceeding 
1.50 percent of the remaining insured principal balance 
(excluding the portion of the remaining balance attrib-
utable to the premium collected under subparagraph (A) 
and without taking into account delinquent payments or 
prepayments). The Secretary, by publication of a notice 
in the Federal Register, may establish or change the 
amount of the premium under subparagraph (A) or the 
annual premium, and the period of the mortgage term for 
which an annual premium amount shall apply.’’. 
SEC. 233. For an additional amount for the ‘‘Admin-
istration, 
Operations 
and 
Management’’ 
account, 
$2,070,635, to increase the Department’s acquisition 
workforce capacity and capabilities: Provided, That such 
funds may be transferred by the Secretary to any other 
account in the Department to carry out the purposes pro-
vided herein: Provided further, That such transfer author-
ity is in addition to any other transfer authority provided 
in this Act: Provided further, That such funds shall be 
available only to supplement and not to supplant existing 
acquisition workforce activities: Provided further, That 
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such funds shall be available for training, recruitment, re-
tention, and hiring additional members of the acquisition 
workforce as defined by the Office of Federal Procurement 
Policy Act, as amended (41 U.S.C. 401 et seq.): Provided 
further, That such funds shall be available for information 
technology in support of acquisition workforce effective-
ness or for management solutions to improve acquisition 
management. 
SEC. 234. The paragraphs under the heading ‘‘Flexi-
ble Subsidy Fund’’ in Public Law 108–447 and in Public 
Law 109–115 are repealed. 
SEC. 235. (a) LOAN LIMIT FLOOR BASED ON 2008 
LEVELS.—For mortgages for which the mortgagee issues 
credit approval for the borrower during fiscal year 2011, 
if the dollar amount limitation on the principal obligation 
of a mortgage determined under section 203(b)(2) of the 
National Housing Act (12 U.S.C. 1709(b)(2)) for any size 
residence for any area is less than such dollar amount lim-
itation that was in effect for such size residence for such 
area for 2008 pursuant to section 202 of the Economic 
Stimulus Act of 2008 (Public Law 110–185; 122 Stat. 
620), notwithstanding any other provision of law or of this 
joint resolution, the maximum dollar amount limitation on 
the principal obligation of a mortgage for such size resi-
dence for such area for purposes of such section 203(b)(2) 
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shall be considered (except for purposes of section 255(g) 
of such Act (12 U.S.C. 1715z–20(g))) to be such dollar 
amount limitation in effect for such size residence for such 
area for 2008. 
(b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 
Notwithstanding any other provision of law or of this joint 
resolution, if the Secretary of Housing and Urban Devel-
opment determines, for any geographic area that is small-
er than an area for which dollar amount limitations on 
the principal obligation of a mortgage are determined 
under section 203(b)(2) of the National Housing Act, that 
a higher such maximum dollar amount limitation is war-
ranted for any particular size or sizes of residences in such 
sub-area by higher median home prices in such sub-area, 
the Secretary may, for mortgages for which the mortgagee 
issues credit approval for the borrower during calendar 
year 2010, increase the maximum dollar amount limita-
tion for such size or sizes of residences for such sub-area 
that is otherwise in effect (including pursuant to sub-
section (a) of this section), but in no case to an amount 
that exceeds the amount specified in section 202(a)(2) of 
the Economic Stimulus Act of 2008. 
SEC. 236. (a) LOAN LIMIT FLOOR BASED ON 2008 
LEVELS.—For mortgages originated during fiscal year 
2011, if the limitation on the maximum original principal 
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obligation of a mortgage that may be purchased by the 
Federal National Mortgage Association or the Federal 
Home Loan Mortgage Corporation determined under sec-
tion 302(b)(2) of the Federal National Mortgage Associa-
tion Charter Act (12 U.S.C. 1717(b)(2)) or section 
305(a)(2) of the Federal Home Loan Mortgage Corpora-
tion Act (12 U.S.C 1754(a)(2)) respectively, for any size 
residence for any area is less than such maximum original 
principal obligation limitation that was in effect for such 
size residence for such area for 2008 pursuant to section 
201 of the Economic Stimulus Act of 2008 (Public Law 
110–185; 122 Stat. 619), notwithstanding any other pro-
vision of law or of this joint resolution, the limitation on 
the maximum original principal obligation of a mortgage 
for such Association and Corporation for such size resi-
dence for such area shall be such maximum limitation in 
effect for such size residence for such area for 2008. 
(b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 
Notwithstanding any other provision of law or of this joint 
resolution, if the Director of the Federal Housing Finance 
Agency determines, for any geographic area that is smaller 
than an area for which limitations on the maximum origi-
nal principal obligation of a mortgage are determined for 
the Federal National Mortgage Association or the Federal 
Home Loan Mortgage Corporation, that a higher such 
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