Sec. 77001. Distributions and residual receipts
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Section 222 of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 ( 12 U.S.C. 4112 ) is amended by adding at the end the following new subsection: After the date of the enactment of this subsection, the owner of a property subject to a plan of action or use agreement pursuant to this section shall be entitled to distribute— annually, all surplus cash generated by the property, but only if the owner is in material compliance with such use agreement including compliance with prevailing physical condition standards established by the Secretary; and notwithstanding any conflicting provision in such use agreement, any funds accumulated in a residual receipts account, but only if the owner is in material compliance with such use agreement and has completed, or set aside sufficient funds for completion of, any capital repairs identified by the most recent third party capital needs assessment.
An owner that distributes any amounts pursuant to paragraph
(1)shall— continue to operate the property in accordance with the affordability provisions of the use agreement for the property for the remaining useful life of the property; as required by the plan of action for the property, continue to renew or extend any project-based rental assistance contract for a term of not less than 20 years; and if the owner has an existing multi-year project-based rental assistance contract for less than 20 years, have the option to extend the contract to a 20-year term. .
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Sec. 77001
Distributions and residual receipts
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