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(2) the project is subject to an unconditional
waiver of, with respect to the mortgage referred to
in paragraph (1)—
(A) all rights to any prepayment of the
mortgage; and
(B) all rights to any voluntary termination
of the mortgage insurance contract for the
mortgage; and
(3) the owner of the project has entered into
binding commitments (applicable to any subsequent
owner) to extend all low-income affordability restric-
tions for the project, including any such restrictions
imposed because of any contract for project-based
assistance for the project.
(c) PROJECTS WITH SECTION 8 PROJECT-BASED AS-
SISTANCE.—A project meets the requirements under this
subsection only if—
(1) the project is subject to a contract for
project-based assistance; and
(2) the owner of the project has entered into
binding commitments (applicable to any subsequent
owner) to extend such assistance for the maximum
period allowable under law (subject to the availabil-
ity of amounts for such purpose) and to extend any
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low-income affordability restrictions applicable to the
project in connection with such assistance.
(d) PROJECTS
PURCHASED
BY
RESIDENTS.—A
project meets the requirements under this subsection only
if the project—
(1) is or was eligible low-income housing (as
such term is defined in section 229 of the Low-In-
come Housing Preservation and Resident Home-
ownership Act of 1990 (42 U.S.C. 4119); and
(2) has been purchased by a resident council for
the housing or is approved by the Secretary for such
purchase, for conversion to homeownership housing
under a resident homeownership program meeting
the requirements under section 226 of such Act (12
U.S.C. 4116).
(e) COMBINATION OF ASSISTANCE.—Notwithstand-
ing subsection (a), any project that is otherwise eligible
for assistance with grant amounts provided under this Act
because the project meets the requirements under sub-
section (b) or (c) and that also meets the requirements
under paragraph (1) of the other of such subsections, shall
be eligible for such assistance only if the project complies
with all of the requirements under such other subsection.
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SEC. 5. GRANT AMOUNT LIMITATION.
The Secretary shall limit the portion of the aggregate
amount of grants under this Act made available for any
fiscal year that may be provided to a single State based
upon the proportion of such State’s need (as determined
by the Secretary) for such assistance to the aggregate
need among all States approved for such assistance for
such fiscal year.
SEC. 6. MATCHING REQUIREMENT.
(a) IN GENERAL.—The Secretary may not make a
grant under this Act to any State for any fiscal year in
an amount that exceeds twice the amount that the State
certifies, as the Secretary shall require, that the State will
contribute for such fiscal year, or has contributed since
January 1, 1999, from non-Federal sources for the pur-
poses under section 4(a).
(b) TREATMENT OF PREVIOUS CONTRIBUTIONS.—
Any portion of amounts contributed after January 1,
1999, that are counted for purposes of meeting the re-
quirement under subsection (a) for a fiscal year may not
be counted for such purposes for any subsequent fiscal
year.
(c) TREATMENT OF TAX CREDITS.—Tax credits pro-
vided under section 42 of the Internal Revenue Code of
1986 and proceeds from the sale of tax-exempt bonds by
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any state or local government entity shall not be consid-
ered non-Federal sources for purposes of this section.
SEC. 7. TREATMENT OF SUBSIDY LAYERING REQUIRE-
MENTS.
Neither section 6 nor any other provision of this Act
may be construed to prevent the use of tax credits pro-
vided under section 42 of the Internal Revenue Code of
1986 in connection with housing assisted with grant
amounts provided under this Act, to the extent that such
use is in accordance with section 102(d) of the Depart-
ment of Housing and Urban Development Reform Act of
1989 (42 U.S.C. 3545(d)) and section 911 of the Housing
and Community Development Act of 1992 (42 U.S.C.
3545 note).
SEC. 8. APPLICATIONS.
The Secretary shall provide for States (through ap-
propriate State agencies) to submit applications for grants
under this Act. The Secretary shall require the applica-
tions to contain any information and certifications nec-
essary for the Secretary to determine whether the State
is eligible to receive such a grant.
SEC. 9. DEFINITIONS.
For purposes of this Act, the following definitions
shall apply:
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(1) LOW-INCOME
AFFORDABILITY
RESTRIC-
TIONS.—The term ‘‘low-income affordability restric-
tions’’ means, with respect to a housing project, any
limitations imposed by regulation or regulatory
agreement on rents for tenants of the project, rent
contributions for tenants of the project, or income-
eligibility for occupancy in the project.
(2) PROJECT-BASED
ASSISTANCE.—The term
‘‘project-based assistance’’ has the meaning given
such term in section 16(c) of the United States
Housing Act of 1937 (42 U.S.C. 1437n(c)), except
that such term includes assistance under any succes-
sor programs to the programs referred to in such
section.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
(4) STATE.—The term ‘‘State’’ means the
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Guam,
the Virgin Islands, American Samoa, and any other
territory or possession of the United States.
SEC. 10. REGULATIONS.
The Secretary may issue any regulations necessary
to carry out this Act.
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SEC. 11. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated for grants
under this title such sums as necessary for each of fiscal
years, 2000, 2001, 2002, 2003, and 2004.
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