PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3841 (A) in paragraph (1), by striking 'Rehabilitation program" and inserting "preservation program"; (B) in paragraphs (3)(A), (3)(B), and (3)(D), by striking "repair and rehabiutation" eadi place it appears and inserting "repair, rehabilitation, and replacement"; (C) in paragraph (4), b^ inserting ", or replacement," after "repair and renabilitation"; and (D) by adding at the end the following new paragraph: "(5) A grantee may use housing preservation grant funds under this section for replacement housing only aft«r providing documentation to the Secretary that— "(A) the existing housing is in such poor condition that rehabilitation is not economically feasible; "(B) the owner of the housing lacks the income or repay- ment ability necessary to qualify for a loan under section 502; and "(C) the grantee will extend assistance to the owner of the housing under terms that the owner can afford.". SEC. 712. PRESERVATION. (a) APPLICABILITY.—Section 502(c) of the Housing Act of 1949 (42 U.S.C. 1472(c)) is amended— (1) in subparagraph (2), by striking "before December 21, 1979," and inserting "prior to the date of enactment of the Depa^ment of Housing and Urban Development Reform Act of 1989"; (2) in subparagraph (4)(A), by striking "before December 21, 1979" ana inserting "prior to the date of enactment of the Department of Housing and Urban Development Reform Act of 1989"; (3) in sulmaragraph (5)(F), by striking "before December 21, 1979" and inserting "prior to the date of enactment of the Department of Housing and Urban Development Reform Act of 1989"; and (4) in subparagraph (SXC), by striking "before December 21, 1979" and inserting "prior to the date of enactment of the Department of Housing and Urban Development Reform Act of 1989". (b) INCENTIVES.—Section 502(c)(4)(B) of the Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)) is amended by adding the following new clause: "(vi) In the case of a project that has received rental assistance under section 8 of the United States Housing Act of 1937, permitting the owner to receive rent in excess of the amount determined necessary by the Secretary to defray the cost of long-term repair or maintenance of such a project.". (c) OFFICE OF RURAL HOUSING PRESERVATION.—Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is amended by inserting after section 536 the following: '*8EC, 837. OFFICE OF RURAL HOUSING PRESERVATION. 42 USC 1490p-l. "(a) ESTABLISHMENT.— There is established within the Farmers Home Administration an Office of Rental Housing Preservation (hereafter in this section referred to as the 'Office'). The Office shall be headed by a Director designated by the Secretary of Agriculture. "(b) PURPOSES.— The purposes of the Office are:
�
