104 STAT. 4156 PUBLIC LAW 101-625—NOV. 28, 1990 shall transfer the project to such other applicant, in accordance with the approved homeownership program. "(b) PREFERENCES.— In selecting eligible families for homeownership, the recipient shall give a first preference to otherwise qualified current tenants and a second preference to otherwise qualified eligible families who have completed participation in an economic self-sufficiency program specified by the Secretary. "(c) CoST LIMITATIONS.—The Secretary may establish cost limitations on eligible activities under this title, subject to the provisions of this title. "(d) ANNUAL CONTRIBUTIONS.—Notwithstanding the purchase of a public housing project under this section, or the purchase of a unit in a public housing project by an eligible family, the Secretary shall continue to pay annual contributions with respect to the project. Such contributions may not exceed the maximum contributions authorized in section 5(a). "(e) OPERATING SUBSIDIES.—Operating subsidies under section 9 of this Act shall not be available with respect to a public housing project after the date of its sale by the public housing agency. " (f) USE OF PROCEEDS FROM SALES TO ELIGIBLE FAMILIES.— The entity that transfers ownership interests in, or shares representing, units to eligible families, or another entity specified in the approved application, shall use the proceeds, if any, from the initial sale for costs of the homeownership program, including operating expenses, improvements to the project, business opportunities for low-income families, supportive services related to the homeownership program, additional homeownership opportunities, and other activities approved by the Secretary. (g) RESTRICTIONS ON RESALE BY HOMEOWNERS.— "(1) IN GENERAL. — "(A) TRANSFER PERMITTED. — A homeowner under a homeownership program may transfer the homeowner's ownership interest in, or shares representing, the unit, except that a homeownership program may establish restrictions on the resale of unite under the program. "(B) RIGHT TO PURCHASE.— Where a resident management corporation, resident council, or cooperative has jurisdiction over the unit, the corporation, council, or cooperative shall have the right to purchase the ownership interest in, or shares representing, the unit from the homeowner for the
amount specified in a firm contract between the homeowner and a prospective buyer. If such an entity does not have jurisdiction over the unit or electe not to purchase and if the prospective buyer is not a low-income family, the public housing agency or the implementation grant recipient shall have the right to purchase the ownership interest in, or shares representing, the unit for the same amount. "(C) PROMISSORY NOTE REQUIRED. —The homeowner shall execute a promissory note equal to the difference between the market value and the purchase price, payable to the public housing agency or other entity designated in the homeownership plan, together with a mortage securing the obligation of the note. "(2) 6 YEARS OR LESS. —In the case of a transfer within 6 years of the acquisition under the program, the homeownership program shall provide for appropriate restrictions to assure that an eligible family may not receive any undue profit. The plan shall
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