114 STAT. 2763A-616 PUBLIC LAW 106-554—APPENDIX G subsection, the Secretary shall satisfy any indebtedness incurred in connection with the property to be transferred, by canceling the indebtedness. "(6) DETERMINATION OF STATUS OF PROPERTIES. —To ensure compliance with the requirements of this subsection, the Secretary shall take the following actions: "(A) UPON ENACTMENT.— Upon the enactment of this subsection, the Secretary shall promptly assess each residential property owned by the Secretary to determine whether such property is a qualified HUD property. "(B) UPON ACQUISITION.—Upon acquiring any residential property, the Secretary shall promptly determine whether the property is a qualified HUD property. "(C) UPDATES.— The Secretary shall periodically reassess the residential properties owned by the Secretary to determine whether any such properties have become qualified HUD properties. "(7) TENANT LEASES. —T h is subsection shall not affect the terms or the enforceability of any contract or lease entered into with respect to any residential property before the date that such property becomes a qualified HUD property. "(8) USE OF PROPERTY.—Property transferred under this subsection shall be used only for appropriate neighborhood revitalization efforts, including homeownership, rental units, commercial space, and parks, consistent with local zoning regulations, local building codes, and subdivision regulations and restrictions of record. " (9) INAPPLICABILITY TO PROPERTIES MADE AVAILABLE FOR HOMELESS.— Notwithstanding any other provision of this subsection, this subsection shall not apply to any properties that the Secretary determines are to be made available for use by the homeless pursuant to subpart E of part 291 of title 24, Code of Federal Regulations, during the period that the properties are so available. "(10) PROTECTION OF EXISTING CONTRACTS. —T his subsection may not be construed to alter, affect, or annul any legally binding obligations entered into with respect to a qualified HUD property before the property becomes a qualified HUD property. "(11) DEFINITIONS.— For purposes of this subsection, the following definitions shall apply: " (A) COMMUNITY DEVELOPMENT CORPORATION. — The term 'community development corporation' means a nonprofit organization whose primary purpose is to promote community development by providing housing opportunities for low-income families. "(B) COST RECOVERY BASIS.— The term 'cost recovery basis' means, with respect to any sale of a residential property by the Secretary, that the purchase price paid by the purchaser is equal to or greater than the sum of: (i) the appraised value of the property, as determined in accordance with such requirements as the Secretary shall establish; and (ii) the costs incurred by the Secretary in connection with such property during the period beginning on the date on which the Secretary acquires title to the property and ending on the date on which the sale is consummated.
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