which the project is located has certified in writing that the property is not inhabited. (12) REGULATIONS. (A) INTERIM.-Not later than 30 days after the date of the enactment of this subsection 1, the Secretary shall issue such interim regulations as are necessary to carry out this subsection. "(B) FINAL.-Not later than 60 days after the date of the enactment of this subsection 1, the Secretary shall issue such final regulations as are necessary to carry out this subsection. EXCERPT FROM HOUSING AND COMMUNITY DEVELOPMENT [Public Law 103-233; 108 Stat. 343; 12 U.S.C. 1701z-11 and 1701z-12] SEC. 203. [12 U.S.C. 1701z-11] MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING PROJECTS. (a) GOALS.-The Secretary of Housing and Urban Development shall manage or dispose of multifamily housing projects that are owned by the Secretary or that are subject to a mortgage held by the Secretary in a manner that (1) is consistent with the National Housing Act and this section; (2) will protect the financial interests of the Federal Government; and (3) will, in the least costly fashion among reasonable available alternatives, address the goals of (A) preserving certain housing so that it can remain available to and affordable by low-income persons; (B) preserving and revitalizing residential neighborhoods; (C) maintaining existing housing stock in a decent, safe, and sanitary condition; (D) minimizing the involuntary displacement of tenants; (E) maintaining housing for the purpose of providing rental housing, cooperative housing, and homeownership opportunities for low-income persons; (F) minimizing the need to demolish multifamily housing projects; (G) supporting fair housing strategies; and (H) disposing of such projects in a manner consistent with local housing market conditions. In determining the manner in which a project is to be managed or disposed of, the Secretary may balance competing goals relating to individual projects in a manner that will further the purposes of this section. (b) DEFINITIONS.-For purposes of this section: (1) MULTIFAMILY HOUSING PROJECT.-The term "multifamily housing project" means any multifamily rental housing project which is, or prior to acquisition by the Secretary was, 1 The date of enactment was December 21, 2000. assisted or insured under the National Housing Act, or was subject to a loan under section 202 of the Housing Act of 1959. (2) SUBSIDIZED PROJECT.-The term "subsidized project" means a multifamily housing project that, immediately prior to the assignment of the mortgage on such project to, or the acquisition of such mortgage by, the Secretary, was receiving any of the following types of assistance: (A) Below market interest rate mortgage insurance under the proviso of section 221(d)(5) of the National Housing Act. (B) Interest reduction payments made in connection with mortgages insured under section 236 of the National Housing Act. (C) Direct loans made under section 202 of the Housing Act of 1959. (D) Assistance in the form of (i) rent supplement payments under section 101 of the Housing and Urban Development Act of 1965, (ii) additional assistance payments under section 236(f)(2) of the National Housing Act, (iii) housing assistance payments made under section 23 of the United States Housing Act of 1937 (as in effect before January 1, 1975), or (iv) housing assistance payments made under section 8 of the United States Housing Act of 1937 (excluding payments made for tenant-based assistance under section 8), if (except for purposes of section 183(c) of the Housing and Community Development Act of 1987) such assistance payments are made to more than 50 percent of the units in the project. (3) FORMERLY SUBSIDIZED PROJECT.-The term "formerly subsidized project" means a multifamily housing project owned by the Secretary that was a subsidized project immediately prior to its acquisition by the Secretary. (4) UNSUBSIDIZED PROJECT. The term term "unsubsidized project" means a multifamily housing project owned by the Secretary that is not a subsidized project or a formerly subsidized project. if (5) AFFORDABLE.-A unit shall be considered affordable (A) for units occupied (i) by very low-income families, the rent does not exceed 30 percent of 50 percent of the area median income, as determined by the Secretary, with adjustments for smaller and larger families; and (ii) by low-income families other than very low-income families, the rent does not exceed 30 percent of 80 percent of the area median income, as determined by the Secretary, with adjustments for smaller and larger families; or (B) the unit, or the family residing in the unit, is receiving assistance under section 8 of the United States Housing Act of 1937. (6) LOW-INCOME FAMILIES AND VERY LOW-INCOME FAMILIES. The terms "low-income families" and "very low-income families" shall have the meanings given the terms in section 3(b) of the United States Housing Act of 1937. (7) PREEXISTING TENANT.-The term "preexisting tenant" means, with respect to a multifamily housing project acquired pursuant to this section by a purchaser other than the Secretary at foreclosure or after sale by the Secretary, a family that resides in a unit in the project immediately before the acquisition of the project by the purchaser. (8) MARKET AREA.-The term "market area" means a market area determined by the Secretary. (9) SECRETARY.-The term "Secretary" means the Secretary of Housing and Urban Development. (c) DISPOSITION OF PROPERTY.— (1) DISPOSITION TO PURCHASERS.-In carrying out this section, the Secretary may dispose of a multifamily housing project owned by the Secretary on a negotiated, competitive bid, or other basis, on such terms as the Secretary deems appropriate considering the low-income character of the project and consistent with the goals in subsection (a), only to a purchaser determined by the Secretary to be capable of (A) satisfying the conditions of the disposition plan developed under paragraph (2) for the project; (B) implementing a sound financial and physical management program that is designed to enable the project to meet anticipated operating and repair expenses to ensure that the project will remain in decent, safe, and sanitary condition and in compliance with any standards under applicable State or local laws, rules, ordinances, or regulations relating to the physical condition of the housing and any such standards established by the Secretary; (C) responding to the needs of the tenants and working cooperatively with tenant organizations; (D) providing adequate organizational, staff, and financial resources to the project; and (E) meeting such other requirements as the Secretary may determine. (2) DISPOSITION PLAN.— 1 (A) IN GENERAL.-Prior to the sale of a multifamily housing project that is owned by the Secretary, the Secretary shall develop an initial disposition plan for the project that specifies the minimum terms and conditions of the Secretary for disposition of the project, the initial sales price that is acceptable to the Secretary, and the assistance that the Secretary plans to make available to a prospective purchaser in accordance with this section. (B) MARKET-WIDE PLANS.-In developing the initial disposition plan under this subsection for a multifamily housing project located in a market area in which at least 1 other multifamily housing project owned by the Secretary is located, the Secretary may coordinate the disposi 1 Indented so in law. tion of all such multifamily housing projects located within the same market area to the extent and in such manner as the Secretary determines appropriate to carry out the goals under subsection (a). (C) SALES PRICE.-The initial sales price shall be reasonably related to the intended use of the project after sale, any rehabilitation requirements for the project, the rents for units in the project that can be supported by the market, the amount of rental assistance available for the project under section 8 of the United States Housing Act of 1937, the occupancy profile of the project (including family size and income levels for tenant families), and any other factors that the Secretary considers appropriate. (D) COMMUNITY AND TENANT INPUT.-In carrying out this section, the Secretary shall develop procedures (i) to obtain appropriate and timely input into disposition plans from officials of the unit of general local government affected, the community in which the project is situated, and the tenants of the project; and (ii) to facilitate, where feasible and appropriate, the sale of multifamily housing projects to existing tenant organizations with demonstrated capacity, to public or nonprofit entities that represent or are affiliated with existing tenant organizations, or to other public or nonprofit entities. (E) TECHNICAL ASSISTANCE.-To carry out the procedures developed under subparagraph (D), the Secretary may provide technical assistance, directly or indirectly, and may use amounts available for technical assistance under the Emergency Low Income Housing Preservation Act of 1987, subtitle C of the Low-Income Housing Preservation and Resident Homeownership Act of 1990, subtitle B of title IV of the Cranston-Gonzalez National Affordable Housing Act, or this section, for the provision of technical assistance under this paragraph. Recipients of technical assistance funding under the provisions referred to in this subparagraph shall be permitted to provide technical assistance to the extent of such funding under any of such provisions or under this subparagraph, notwithstanding the source of the funding. (3) FORECLOSURE SALE.-In carrying out this section, the Secretary shall (A) prior to foreclosing on any mortgage held by the Secretary on any multifamily housing project, notify both the unit of general local government in which the property is located and the tenants of the property of the proposed foreclosure sale; and (B) dispose of a multifamily housing project through a foreclosure sale only to a purchaser that the Secretary determines is capable of implementing a sound financial and physical management program that is designed to enable the project to meet anticipated operating and repair expenses to ensure that the project will remain in decent, safe, and sanitary condition and in compliance with any standards under applicable State or local laws, rules, ordinances, or regulations relating to the physical condition of the housing and any such standards established by the Secretary. (d) MANAGEMENT AND MAINTENANCE OF PROPERTIES.— (1) CONTRACTING FOR MANAGEMENT SERVICES.—In carrying out this section, the Secretary may— (A) contract for management services for a multifamily housing project that is owned by the Secretary (or for which the Secretary is mortgagee in possession) with forprofit and nonprofit entities and public agencies (including public housing authorities) on a negotiated, competitive bid, or other basis at a price determined by the Secretary to be reasonable, with a manager the Secretary has determined is capable of— (i) implementing a sound financial and physical management program that is designed to enable the project to meet anticipated operating and maintenance expenses to ensure that the project will remain in decent, safe, and sanitary condition and in compliance with any standards under applicable State or local laws, rules, ordinances, or regulations relating to the physical condition of the project and any such standards established by the Secretary; (ii) responding to the needs of the tenants and working cooperatively with tenant organizations; (iii) providing adequate organizational, staff, and financial resources to the project; and (iv) meeting such other requirements as the Secretary may determine; and (B) require the owner of a multifamily housing project that is subject to a mortgage held by the Secretary to contract for management services for the project in the manner described in subparagraph (A). (2) MAINTENANCE OF PROJECTS OWNED BY SECRETARY.—In the case of multifamily housing projects that are owned by the Secretary (or for which the Secretary is mortgagee in possession), the Secretary shall (A) to the greatest extent possible, maintain all such occupied projects in a decent, safe, and sanitary condition and in compliance with any standards under applicable State or local laws, rules, ordinances, or regulations relating to the physical condition of the housing and any such standards established by the Secretary; (B) to the greatest extent possible, maintain full occupancy in all such projects; and (C) maintain all such projects for purposes of providing rental or cooperative housing. (3) PROJECTS SUBJECT TO A MORTGAGE HELD BY SECRETARY.-In the case of any multifamily housing project that is subject to a mortgage held by the Secretary, the Secretary shall require the owner of the project to carry out the requirements of paragraph (2). |