HR 2930 RFS 
viding rental assistance under section 8 for the 
project (if any) does not increase’’. 
SEC. 202. SOURCES OF REFINANCING. 
The last sentence of section 811(b) of the American 
Homeownership and Economic Opportunity Act of 2000 
(12 U.S.C. 1701q note) is amended— 
(1) by inserting after ‘‘National Housing Act,’’ 
the following: ‘‘or approving the standards used by 
authorized lenders to underwrite a loan refinanced 
with risk sharing as provided by section 542 of the 
Housing and Community Development Act of 1992 
(12 U.S.C. 1701 note),’’; and 
(2) by striking ‘‘may’’ and inserting ‘‘shall’’. 
SEC. 203. USE OF UNEXPENDED AMOUNTS. 
Subsection (c) of section 811 of the American Home-
ownership and Economic Opportunity Act of 2000 (12 
U.S.C. 1701q note) is amended— 
(1) in the matter preceding paragraph (1), by 
inserting after ‘‘tenants,’’ the following: ‘‘or is used 
in the provision of affordable rental housing and re-
lated social services for elderly persons by the pri-
vate nonprofit organization project owner, private 
nonprofit organization project sponsor, or private 
nonprofit organization project developer,’’; 
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(2) in paragraph (1), by striking ‘‘not more 
than 15 percent of’’; 
(3) in paragraph (2), by inserting before the 
semicolon the following; ‘‘, including reducing the 
number of units and reconfiguring units that are 
functionally obsolete, unmarketable, or not economi-
cally viable’’; 
(4) in paragraph (3), by striking ‘‘or’’ at the 
end; 
(5) in paragraph (4) by striking the period at 
the end and inserting a semicolon; and 
(6) by adding at the end the following new 
paragraphs: 
‘‘(5) the payment to the project owner, sponsor, 
or third party developer of a developer’s fee in an 
amount not to exceed— 
‘‘(A) in the case of a project refinanced 
through a State low income housing tax credit 
program, the fee permitted by the low income 
housing tax credit program as calculated by the 
State program as a percentage of acceptable de-
velopment cost as defined by that State pro-
gram; or 
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‘‘(B) in the case of a project refinanced 
through any other source of refinancing, 15 
percent of the acceptable development cost; or 
‘‘(6) the payment of equity, if any, to— 
‘‘(A) in the case of a sale, to the seller or 
the sponsor of the seller, in an amount equal to 
the lesser of the purchase price or the appraised 
value of the property, as each is reduced by the 
cost of prepaying any outstanding indebtedness 
on the property and transaction costs of the 
sale; or 
‘‘(B) in the case of a refinancing without 
the transfer of the property, to the project 
owner or the project sponsor, in an amount 
equal to the difference between the appraised 
value of the property less the outstanding in-
debtedness and total acceptable development 
cost. 
For purposes of paragraphs (5)(B) and (6)(B), the term 
‘‘acceptable development cost’’ shall include, as applicable, 
the cost of acquisition, rehabilitation, loan prepayment, 
initial reserve deposits, and transaction costs.’’. 
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