103 STAT. 2038 PUBLIC LAW 101-235—DEC. 15, 1989 ment a plan of action under subtitle B of the Emei^ency Low Income Housing Preservation Act of 1987"; (iii) adding a new subparagraph after subparagraph (D): "(E) Permit repayment of the debt service to be deferred as long as the low and moderate income character of the project is maintained in accordance with subsection (d).". (b) APPROVAL OF PLAN OP ACTION. — (1) TENANT PROFILE. —Section 225(b)(3)(F)(i) of the Emergency 12 USC 1715/ Low Income Housing Preservation Act of 1987 is amended by ^°^- inserting before the semicolon the following: "Obased on the area median income limits established by the Secretary in February, 1987), or the date the plan of action is approved, whichever date results in the highest proportion of very low-income families, except that this limitation shall not prohibit a higher propor- tion of very low-income families from occupying the housing". (2) SECTION 8 RENTAL ASSISTANCE.—Section 225 of the Emer- gency Low Income Housing Preservation Act of 1987 is amende4, by adding at the end the following new subsections: Contracts. " (c) SECTION 8 RENTAL ASSISTANCE. —When providing rental assist- ance under section 8, the Secretary may enter into a contract with an owner, contingent upon the future availability of appropriations for the purpose of renewing expiring contracts for rental assistance as provided in appropriations Acts, to extend the term of such rental assistance for such additional period or periods as is necessary to carry out an approved plan of action. The contract and the approved plan of action shall provide that, if the Secretary is unable to extend the term of such rental assistance or is unable to develop a revised package of incentives providing benefits to the owner comparcd)le to those received under the original approved plan of action, the Secretary, upon the request of the owner, shall take the following actions (subject to the limitetions under the following para- graphs):— "(1) Modification of the binding commitments made pursuant to subsection (b) that are dependent on such rental assistance. "(2) If action under paragraph (1) is not feasible, release of an owner from the binding commitments made pursuant to subsec- tion (b) that are dependent on such rental assistance. "(3) If action under paragraphs (1) and (2) would, in the determination of the Secretary, result in the default of the insured loan, approval of the revised plan of action, notwith- standing subsection (a), that involves the termination of low- income affordability restrictions. At least 30. days prior to making a request under the preceding sentence, an owner shall not^ the Secfttaxy of the owner's in- tentiW to submit the nBquest.^rhe Secretary shall have a period of 90 days following recciipt of such notice to take action to extend the rental assistance contract and to continue the binding commitments under subsection (b). "(d) RELOCATION OF DISPLACED TENANTS. —Any plan of action shall specify actions that the Secretary and the owner shall take to ensure that any tenants, displaced as a result of a plan of action approved under subsection (a) or as a result of modifications tciken pursuant to subsection (c), are relocated to affordable housing.". (c) INSURANCE FOR SECOND MORTGAGE FINANCING. — (1) UNDERWRITING. —Section 241(fK2) of the Nationed Housing 12 USC 1715Z-6. Act is amended by adding at the end the following sentence:
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