Sec. 801. ANNUAL ADJUSTMENT FACTORS FOR SECTION 8 RENTS
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## SEC. 801 ANNUAL ADJUSTMENT FACTORS FOR SECTION 8 RENTS **[**[42 U.S.C. 1437f note](/us/usc/t42/s1437f)**]** ###
(a)Effect of Prior Comparability Studies ####
(1)In general In any case in which, in implementing section 8(c)(2) of the United States Housing Act of 1937— #####
(A)the use of comparability studies by the Secretary of Housing and Urban Development or the appropriate State agency as an independent limitation on the amount of rental adjustments resulting from the application of an annual adjustment factor under such section has resulted in the reduction of the maximum monthly rent for units covered by the contract or the failure to increase such contract rent to the full amount otherwise permitted under the annual adjustment factor, or #####
(B)an assistance contract requires a project owner to make a request before becoming eligible for a rent adjustment under the annual adjustment factor and the project owner certifies that such a request was not made because of anticipated negative adjustment to the project rents, for fiscal year 1980, and annually thereafter until regulations implementing this section take effect, rental adjustments shall be calculated as an amount equal to the annual adjustment factor multiplied by a figure equal to the contract rent minus the amount of contract rent attributable to debt service. Upon the request of the project owner, the Secretary shall pay to the project owner the amount, if any, by which the total rental adjustment calculated under the preceding sentence exceeds the total adjustments the Secretary or appropriate State agency actually approved, except that solely for purposes of calculating retroactive payments under this subsection, in no event shall any project owner be paid an amount less than 30 percent of a figure equal to the aggregate of the annual adjustment factor multiplied by the full contract rent for each year on or after fiscal year 1980, minus the sum of the rental payments the Secretary or appropriate State agency actually approved for those years. The method provided by this subsection shall be the exclusive method by which retroactive payments, whether or not requested, may be made for projects subject to this subsection for the period from fiscal year 1980 until the regulations issued under subsection
(e)take effect. For purposes of this paragraph, “debt service” shall include interest, principal, and mortgage insurance premium if any. ####
(2)Applicability #####
(A)In general Subsection
(a)shall apply with respect to any use of comparability studies referred to in such subsection occurring before the effective date of the regulations issued under subsection (e). #####
(B)Final litigation Subsection
(a)shall not apply to any project with respect to which litigation regarding the authority of the Secretary to use comparability studies to limit rental adjustments under section 8(c)(2) of the United State Housing Act of 1937 has resulted in a judgment before the effective date of this Act4 that is final and not appealable (including any settlement agreement). 4The date of enactment was December 15, 1989. ###
(b)3-Year Payments The Secretary shall provide the amounts under subsection
(a)over the 3-year period beginning on the effective date of the regulations issued under subsection (e). The Secretary shall provide the payments authorized under subsection
(a)only to the extent approved in subsequent appropriations Acts. There are authorized to be appropriated such sums as may be necessary for this purpose. ###
(c)Comparability Studies Section 8(c)(2)(C) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(C) is amended by inserting after the period at the end of the first sentence the following: * * * ###
(d)Determination of Contract Rent ####
(1)The Secretary shall upon the request of the project owner, make a one-time determination of the contract rent for each project owner referred to in subsection (a). The contract rent shall be the greater of the contract rent— #####
(A)currently approved by the Secretary under section 8(c)(2) of the United States Housing Act of 1937, or #####
(B)calculated in accordance with the first sentence of subsection (a)(1). ####
(2)All adjustments in contract rents under section 8(c)(2) of the United States Housing Act of 1937, including adjustments involving projects referred to in subsection (a), that occur beginning with the first anniversary date of the contract after the regulations issued under subsection
(e)take effect shall be made in accordance with the annual adjustment and comparability provisions of sections (8)(c)(2)(A) and 8(c)(2)(C) of such Act, respectively, using the one-time contract rent determination under paragraph (1). ###
(e)Regulations The Secretary shall issue regulations to carry out this section and the amendments made by this section, including the amendments made by subsection
(c)with regard to annual adjustment factors and comparability studies. The Secretary shall issue such regulations not later than the expiration of the 180-day period beginning on the date of the enactment of this Act.4 ###
(f)Report Not later than March 1, 1990, the Secretary shall report to the Congress on the feasibility and desirability, and the budgetary, legal, and administrative aspects, of adjusting contract rents under section 8(c)(2)(C) of the United States Housing Act of 1937 on the basis of any alternative methodologies that are simpler in application than individual project comparability studies. ###
(g)Technical Amendment The first sentence of section 8(c)(2)(C) of the United States Housing Act of 1937 is amended by inserting * * *
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Sec. 801
ANNUAL ADJUSTMENT FACTORS FOR SECTION 8 RENTS
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