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onstrations. The final report shall also include a description
of the status of each multifamily housing project selected
for the demonstrations under this section. The final report
shall include—
(1) the size of the projects;
(2) the geographic locations of the projects, by
State and region;
(3) the physical and financial condition of the
projects;
(4) the occupancy profile of the projects, includ-
ing the income, family size, race, and ethnic origin
of current tenants, and the rents paid by such ten-
ants;
(5) a description of actions undertaken pursuant
to this section, including a description of the effective-
ness of such actions and any impediments to the
transfer or sale of multifamily housing projects;
(6) a description of the extent to which the dem-
onstrations under this section have displaced tenants
of multifamily housings projects;
(7) a description of any of the functions per-
formed in connection with this section that are trans-
ferred or contracted out to public or private entities
or to States;
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(8) a description of the impact to which the dem-
onstrations under this section have affected the local-
ities and communities where the selected multifamily
housing projects are located; and
(9) a description of the extent to which the dem-
onstrations under this section have affected the owners
of multifamily housing projects.
(g) EFFECTIVE DATE.—The provisions of this section
shall become effective on October 1, 1996.
SEC. 214. CONTRACT RENEWAL.—With respect to con-
tracts for project based rental assistance under section 8 of
the United States Housing Act of 1937 which contracts ex-
pire during fiscal year 1996, the Secretary shall take the
following actions to renew such contracts:
(a) CONTRACT
TERM.—All renewal contracts
under this section shall have terms of one year.
(b) TENANT-BASED ASSISTANCE OPTIONAL.—Not-
withstanding section 8(v) of the United States Hous-
ing Act of 1937, the Secretary may, with the consent
of the owner, agree to provide tenant-based rental as-
sistance under section 8(b) or 8(o) of the United
States Housing Act of 1937 in lieu of providing
project-based rental assistance under this section. The
Secretary may offer incentives to project owners to
accept tenant-based assistance.
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(c) DEMONSTRATION PROGRAM.—If such expir-
ing contracts are eligible for the demonstration pro-
gram under section 213 hereof, such contracts shall be
addressed under the terms of section 213.
(d) LOAN
MANAGEMENT
SET-ASIDE.—The Sec-
retary shall offer to renew all Loan Management Set-
Aside contracts expiring during fiscal year 1996 that
are not subject to the demonstration program under
section 213 hereof, on existing conditions and for the
term provided in subsection (a) hereof.
(e) EXPIRING
CONTRACTS
FOR
FHA-INSURED
PROJECTS.—For multifamily projects whose mort-
gages are insured under the National Housing Act,
that are assisted under (§ 8 NC/SR), and that are not
subject to the demonstration program under section
213 hereof, the Secretary shall make two offers to
renew such expiring contracts:
(1) Renewal of the current contract, with
rents equal to the fair market rent of the locality
in which the project is located.
(2) Under the Loan Management Set-Aside
Program.
(f) OTHER
EXPIRING
CONTRACTS.—The Sec-
retary shall offer to renew all remaining expiring
project-based contracts, with rents equal to the fair
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market rent of the locality in which the project is lo-
cated.
(g) EFFECTIVE DATE.—The provisions of this section
shall become effective on October 1, 1996.
PRESERVATION REFORM
SEC. 217. Subtitle B of the Low-Income Housing Pres-
ervation and Resident Homeownership Act of 1990, is
amended as follows:
(a) After section 201, insert the following new
section:
‘‘SEC. 202. APPLICABILITY.
‘‘This subtitle shall be applicable to all eligible low-
income housing which has not received funding for a plan
of action before October 1, 1995. Eligible projects which
have received funding before such effective date shall be gov-
erned by the Low Income Housing Preservation and Resi-
dent Homeownership Act of 1990 as was in effect before
such effective date.’’.
(b) Section 211 is amended to read as follows:
‘‘SEC. 211. PERMISSIBLE PREPAYMENT OR INCENTIVES NOT
TO PREPAY.
‘‘(a) PREPAYMENT AND TERMINATION.—An owner of
eligible low income housing may prepay, and a mortgagee
may accept prepayment, in accordance with the terms of
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the mortgage note, and regulations in effect when said note
was signed.
‘‘(b) PLAN OF ACTION.—An owner of eligible housing
who does not exercise the right to prepay the mortgage may
file a plan of action to receive incentives to extend low in-
come use pursuant to section 219(b) or incentives for trans-
fers to qualified purchasers pursuant to section 220.’’.
(c) Section 212(a) is amended by striking the
words ‘‘as in accordance with section 218’’.
(d) Striking out section 214.
(e) Section 215 is amended as follows:
(1) Subsection (a) is amended to read as
follows:
‘‘(a) DETERMINATION
OF RELATION
TO FEDERAL
COST
LIMITS.—For each eligible low-income housing
project appraised under section 213(a), the Secretary shall
make an initial determination as to whether the estimated
allowable equity loan pursuant to section 219(b)(8) or the
estimated allowable grant pursuant to section 220(d)(3)(A)
exceeds the amount equal to 60 times the most recently pub-
lished fair market rent for the area in which the project
is located and the appropriate unit size for all of the units
in the eligible housing. The initial determination shall be
used solely for the purpose of providing information to own-
ers pursuant to section 216. Actual incentives available to
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an owner (or a qualified purchaser) shall be determined
pursuant to an approved plan of action; provided however,
that the Secretary may not approve incentives in an
amount exceeding the federal cost limits as defined in this
section, unless the Secretary determines that preservation
for the eligible low income housing project is appropriate.’’.
(2) Subsection (b) is amended to read as
follows:
‘‘(b) HOUSING EXCEEDING FEDERAL COST LIMITS.—
If the estimated allowable equity loan or grant for an eligi-
ble low income housing project exceeds the federal cost limit,
the owner may:
‘‘(1) file a plan of action under section 217 to
receive incentives under section 219;
‘‘(2) file a second notice of intent under section
216(d) indicating an intention to transfer the housing
under section 220 and take actions pursuant to such
section;
‘‘(3) file a second notice under section 216(d) in-
dicating an intention to transfer the housing under
section 220 so long as a qualified purchaser provides
non-preservation resources sufficient to accommodate
the difference between the incentives approved under
the applicable plan of action and the actual purchase
price; or