110 STAT. 2896 PUBLIC LAW 104-204—SEPT. 26, 1996 (1) the term "expiring contract" means a contract for project-based assistance under section 8 of the United States Housing Act of 1937 that expires during fiscal year 1997; (2) the term "family" has the same meaning as in section 3(b) of the United States Housing Act of 1937; (3) the term "multifamily housing project" means a property consisting of more than 4 dwelling units that is covered in whole or in part by a contract for project-based assistance under section 8 of the United States Housing Act of 1937; (4) the term "owner" has the same meaning as in section 8(f) of the United States Housing Act of 1937; (5) the term "project-based assistance" means rental assistance under section 8 of the United States Housing Act of 1937 that is attached to a multifamily housing project; (6) the term "public agency" means a State housing finance agency, a local housing agency, or other agency with a public purpose and status; (7) the term "Secretary means the Secretary of Housing and Urban Development; and (8) the term "tenant-based assistance" has the same meaning as in section 8(f) of the United States Housing Act of 1937. (b) SECTION 8 CONTRACT RENEWAL AUTHORITY.— (1) IN GENERAL. —Notwithstanding section 405(a) of the Balanced Budget Downpayment Act, I, upon the request of the owner of a multifamily housing project that is covered by an expiring contract, the Secretary shall use amounts made available for the renewal of assistance under section 8 of the United States Housing Act of 1937 to renew the expiring contract as project-based assistance for a period of not more than one year, at rent levels that are equal to those under the expiring contract as of the date on which the contract expires: Provided, That those rent levels do not exceed 120 percent of the fair market rent for the market area in which the project is located. For an FHA-insured multifamily housing project with an expiring contract at rent levels that exceed 120 percent of the fair market rent for the market area, the Secretary shall provide, at the request of the owner, section 8 project-based assistance, for a period of not more than one year, at rent levels that do not exceed 120 percent of the fair market rent. (2) EXEMPTION FOR STATE AND LOCAL HOUSING AGENCY PROJECTS. — Notwithstanding paragraph (1), upon the expiration of a contract with rent levels that exceed the percentage described in that paragraph, if the Secretary determines that the primary financing or mortgage insurance for the multifamily housing project that is covered by that expiring contract was provided by a public agency, the Secretary shall, at the request of the owner and the public agency, renew the expiring contract— (A) for a period of not more than one year; and (B) at rent levels that are equal to those under the expiring contract as of the date on which the contract expires. (3) SECTION 202, SECTION sii, AND SECTION 515 PROJECTS.— Notwithstanding paragraph (1), for section 202 projects, section 811 projects and section 515 projects, upon the expiration of
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