Basic Laws on Housing and Community Development

SEC. 257. [12 U.S.C. 4147] FUNDING.

The Secretary shall use not more than $25,000,000 of the amounts made available under section 234(a) for fiscal year 1993, and not more than $25,000,000 of the amounts made available under section 234(a) for fiscal year 1994, to carry out this subtitle. Of any amounts made available to carry out this subtitle in any appropriation Act, 90 percent shall be set aside for use in accordance with section 253 and 10 percent shall be set aside for use in accordance with subsection 254.

(d) DEFINITION OF ELIGIBLE INTERMEDIARIES.-For purposes of this section, the term "eligible intermediary" means a State, regional, or national organization (including a quasi-public organization) or a State or local housing agency that

(1) has as a central purpose the preservation of existing affordable housing and the prevention of displacement;

(2) does not receive direct Federal appropriations for operating support;

(3) in the case of a national nonprofit organization, has been in existence for at least 5 years prior to the date of application and has been classified by the Internal Revenue Service as an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986;

(4) in the case of a regional or State nonprofit organization, has been in existence for at least 3 years prior to the date of application and has been classified by the Internal Revenue Service as an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986 or is otherwise a tax-exempt entity;

(5) has a record of service to low-income individuals or community-based nonprofit housing developers in multiple communities and, with respect to intermediaries administering assistance under section 253, has experience with the allocation or administration of grant or loan funds; and

(6) meets standards of fiscal responsibility established by the Secretary.

SEC. 256. [12 U.S.C. 4146] DEFINITIONS.

For purposes of this subtitle

(1) the term "community-based nonprofit housing developer" means a nonprofit community development corporation that

(A) has been classified by the Internal Revenue Service as an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986;

(B) has been in existence for at least 2 years prior to the date of the grant application;

(D) is organized at the neighborhood, city, county or multi-county level; and

(E) in the case of a corporation acquiring eligible housing under subtitle B of this title, agrees to form a purchaser entity that conforms to the definition of a community-based nonprofit organization under such subtitle and agrees to use its best efforts to secure majority tenant consent to the acquisition of the project for which grant assistance is requested; and

(2) the terms "eligible low-income housing", "nonprofit organization", "owner", and "resident council" have the meanings given such terms in section 229.

SEC. 257. [12 U.S.C. 4147] FUNDING.

TRANSITION AND OTHER LOW-INCOME HOUSING
PRESERVATION PROVISIONS

EXCERPTS FROM CRANSTON-GONZALEZ NATIONAL AFFORDABLE
HOUSING ACT

[Public Law 101-625; 104 Stat. 4249; 12 U.S.C. 4101 note, 4125]

TITLE VI-PRESERVATION OF AFFORDABLE RENTAL HOUSING

Subtitle A-Prepayment of Mortgages Insured Under National Housing Act

SEC. 601. PREPAYMENT OF MORTGAGES.

(a) IN GENERAL.-Subtitles A and B of the Emergency Low Income Housing Preservation Act of 1987 (12 U.S.C. 17157 note) are amended to read as follows:

(b) TABLE OF CONTENTS.-The table of contents of such Act is amended by striking the items relating to subtitles A and B of title II and inserting the following:

SEC. 602. RELATED NATIONAL HOUSING ACT AMENDMENTS.

(a) INSURANCE FOR SECOND MORTGAGE FINANCING.-Section 241(f) of the National Housing Act is amended to read as follows:

(b) APPROVAL PRIOR TO FORECLOSURE.-Section 250(b) of such Act (12 U.S.C. 1715z-15(b)) is amended to read as follows:

SEC. 603. RELATED UNITED STATES HOUSING ACT OF 1937 AMENDMENTS.

Section 89(v)(2)1 of the United States Housing Act of 1937 is amended by striking out "Emergency Low Income Housing Preservation Act of 1987" and inserting "Low-Income Housing Preservation and Resident Homeownership Act of 1990".

SEC. 604. [12 U.S.C. 4101 note] TRANSITION PROVISIONS.

(a) HOUSING ELIGIBLE FOR ELECTION.-Any owner of housing that becomes eligible low-income housing before January 1, 1991 and who, before such date, filed a notice of intent under section 222 of the Emergency Low Income Housing Preservation Act of 1987

So in law. Probably intended to refer to section 8(v)(2).

(as such section existed before the date of the enactment of this Act) or under section 212 of such Act (as amended by section 601(a)) may elect to be subject to (1) the provisions of such Act as in effect before the date of the enactment of this Act, or (2) the provisions of the Low-Income Housing Preservation and Resident Homeownership Act of 1990, after the date of the enactment of this Act. 1 The Secretary shall establish procedures for owners to make the election under the preceding sentence. An owner that elects to be subject to the provisions of the Emergency Low Income Housing Preservation Act of 1987 shall comply with section 212(b), section 217(a)(2), and section 217(c) of the Low-Income Housing Preservation and Resident Homeownership Act of 1990.

(b) RIGHT OF CONVERSION TO NEW SYSTEM.-Any owner who has filed a plan of action on or before October 11, 1990, shall have the right to convert to the system of incentives and restrictions under this subtitle, with such adjustments as the Secretary determines to be appropriate to compensate for the value of any incentives the owner received under the Emergency Low Income Housing Preservation Act of 1987. Owners filing plans after such date shall not have any right under this subsection.

(c) EFFECTIVENESS OF REPEALED PROVISIONS.-Notwithstanding the amendment made by section 601(a), the provisions of the Emergency Low Income Housing Preservation Act of 1987 (as in effect immediately before the date of the enactment of this Act)1 shall apply with respect to any housing for which the election under subsection (a)(1) is made. With respect to housing for which such an election is made

(1) in making incentives under section 224 of such Act available to such housing, the Secretary

(A) shall, for approvable plans of action, provide assistance sufficient to enable a nonprofit organization that has purchased or will purchase an eligible low income housing project to meet project oversight costs; and

(B) may not refuse to offer incentives referred to in such section to any owner who filed a notice of intent under section 222 of such Act before October 15, 1991, based solely on the date of filing of the plan of action for the housing; and

(2) provisions of section 233(1)(A)(i) of such Act shall not apply, and the term "eligible low income housing" shall, for purposes of such Act, shall include housing financed by a loan or mortgage that is insured or held by the Secretary or a State or State agency under section 221(d)(3) of the National Housing Act and receiving loan management assistance under section 8 of the United States Housing Act of 1937 due to a conversion from section 101 of the Housing and Urban Development Act of 1965.

(d) REGULATIONS.-Not later than the expiration of the 90-day period beginning on the date of the enactment of this Act, 1 the Secretary of Housing and Urban Development shall, subject to the provisions of section 553 of title 5, United States Code, publish proposed rules to implement this subtitle and the amendments made

1 The date of enactment was November 28, 1990.

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