MULTIFAMILY HOUSING PROPERTY DISPOSITION REFORM ACT OF 1994: Sec. 103(h) (preventing mortgage defaults on FHA-insured multifamily housing projects) Public Law 103–233 108 Stat. 362 MULTIFAMILY HOUSING PROPERTY DISPOSITION REFORM ACT OF 1994: Sec. 103(h) (preventing mortgage defaults on FHA-insured multifamily housing projects) 233 103–233 Statute Compilation United States House of Representatives Office of the Legislative Counsel text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. GPO Statute Compilations USLM converter, version 20210527.1 2021-10-15 Multifamily Housing Property Disposition Reform Act of 1994 5255 103 1994-04-11 MULTIFAMILY HOUSING PROPERTY DISPOSITION REFORM ACT OF 1994: Sec. 103(h) (preventing mortgage defaults on FHA-insured multifamily housing projects) [Public Law 103–233; 108 Stat. 362; 12 U.S.C. 1715z–1a note] [This law has not been amended] [Currency: This publication is a compilation of the text of section 103(h) of Public Law 103–233. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/] [Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]
SEC. 103. PREVENTING MORTGAGE DEFAULTS ON MULTIFAMILY HOUSING PROJECTS. * * * * * * * (h) [12 U.S.C. 1715z–1a note] Alternative Uses for Prevention of Default.— (1) In general.—Subject to notice to and comment by existing tenants, to prevent the imminent default of a multifamily housing project subject to a mortgage insured under title II of the National Housing Act, the Secretary may authorize the mortgagor to use the project for purposes not contemplated by or permitted under the regulatory agreement, if— (A) such other uses are acceptable to the Secretary; (B) such other uses would be otherwise insurable under title II of the National Housing Act; (C) the outstanding principal balance on the mortgage covering such project is not increased; (D) any financial benefit accruing to the mortgagor shall, subject to the discretion of the Secretary, be applied to project reserves or project rehabilitation; and (E) such other use serves a public purpose. (2) Displacement protection.—The Secretary may take actions under paragraph (1) only if— (A) tenant-based rental assistance under section 8 of the United States Housing Act of 1937 is made available to each eligible family residing in the project that is displaced as a result of such actions; and (B) the Secretary determines that sufficient habitable, affordable (as such term is defined in section 203(b) of the Housing and Community Development Amendments of 1978) rental housing is available in the market area in which the project is located to ensure use of such assistance. (3) Implementation.—The Secretary shall, by notice published in the Federal Register, which shall take effect upon publication, establish such requirements as may be necessary to implement the amendments made by this subsection. The notice shall invite public comments and, not later than 12 months after the date on which the notice is published, the Secretary shall issue final regulations based on the initial notice, taking into account any public comments received.