PUBLIC LAW 100-242—FEB. 5, 1988
101 STAT. 1871
Secretary, without the competitive selection of purchasers or intermediaries, to agencies of State or local government, or groups of investors that include at least 1 such agency of State or local government, if the negotiations are conducted with such agencies, except that— "(A) the terms of any such sale shall include the agreement of the purchasing agency or agencies of State or local government ? to act as mortgagee or owner of a beneficial interest in such mortgages in a manner consistent with maintaining the projects that are subject to such mortgages for occupancy by the general tenant group intended to be served by the applicable mortgage insurance program, including, to the extent the Secretary determines appropriate, authorizing such agency of State or local government to enforce the provisions of any regulatory agreement or other program requirements applicable to the related projects; and "(B) the sales prices for such mortgages shall be, in the determination of the Secretary, the best price that may be obtained for such mortgages from an agency of State or local government, consistent with the expectation and intention that the projects financed will be retained for use under the applicable mortgage insurance program for the life of the initial mortgage insurance contract.. (h) DEFINITIONS.—Section 203(i) of the Housing and Community Development Amendments of 1978 (as so redesignated by this section) is amended— 12 USC I70lz-ll. (1) by inserting "(1)" after the subsection designation; and (2) by adding at the end the following new paragraphs: "(2) For the purpose of this section, the term 'subsidized project' means a multifamily housing project receiving any of the following assistance immediately prior to the assignment of the mortgage on such project to, or the acquisition of such mortgage by, the Secretary: ^ "(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) rent supplement payments under section 101 of the Housing and Urban Development Act of 1965; "(D) direct loans at below market interest rates, made under section 202 of the Housing Act of 1959 or to a multifamily housing project under section 312 of the Housing Act of 1964; or "(E) housing assistance payments made under section 23 of the United States Housing Act of 1937 (as in effect before January 1, 1975) or section 8 of the United States Housing Act of 1937 (other than subsection (b)(1) of such section), without regard to whether such payments are made to all or a portion of the units in the project. "(3) For the purpose of this section, 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.". SEC. 182. ACQUISITION OF INSURED MULTIFAMILY HOUSING PROJECTS. Section 207(k) of the National Housing Act is amended by insert- 12 USC 1713. ing after the second sentence the following new sentence: "In deter-
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