Sec. 219. INCENTIVES TO EXTEND LOW-INCOME USE
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## SEC. 219 INCENTIVES TO EXTEND LOW-INCOME USE **[**[12 U.S.C. 4109](/us/usc/t12/s4109)**]** ###
(a)Agreements by Secretary After approving a plan of action from an owner of eligible low-income housing that includes the owner's plan to extend the low-income affordability restrictions of the housing, the Secretary shall, subject to the availability of appropriations for such purpose, enter into such agreements as are necessary to enable the owner to receive (for each year after the approval of the plan of action) the annual authorized return for the housing determined under section 214(a), pay debt service on the federally-assisted mortgage covering the housing, pay debt service on any loan for rehabilitation of the housing, and meet project operating expenses and establish adequate reserves. The Secretary shall take into account the Federal cost limits under section 215(a) for the housing when providing incentives under subsections (b)(2) and
(3)of this section. The Secretary shall take such actions as are necessary to ensure that owners receive the annual authorized return for the housing determined under section 214(a) during the period in which rent increases are phased in as provided in section 222(a)(2)(E), including (in order of preference)
(1)allowing the owner access to residual receipt accounts (pursuant to subsection (b)(1) of this section),
(2)deferring remittance of excess rent payments, and
(3)providing an increase in rents permitted under an existing contract under section 8 of the United States Housing Act of 1937 (pursuant to subsection (b)(2) of this section). ###
(b)Permissible Incentives Such agreements may include one or more of the following incentives: ####
(1)Increased access to residual receipts accounts. ####
(2)Subject to the availability of amounts provided in appropriations Acts— #####
(A)an increase in the rents permitted under an existing contract under section 8 of the United States Housing Act of 1937, or #####
(B)additional assistance under section 8 or an extension of any project-based assistance attached to the housing; and3 3So in law. ####
(3)An increase in the rents on units occupied by current tenants as permitted under section 222. ####
(4)Financing of capital improvements under section 201 of the Housing and Community Development Amendments of 1978. ####
(5)Financing of capital improvements through provision of insurance for a second mortgage under section 241 of the National Housing Act. ####
(6)In the case of housing defined in section 229(1)(A)(iii), redirection of the Interest Reduction Payment subsidies to a second mortgage. ####
(7)Access by the owner to a portion of the preservation equity in the housing through provision of insurance for a second mortgage loan insured under section 241(f) of the National Housing Act or a non-insured mortgage loan approved by the Secretary and the mortgagee. ####
(8)Other incentives authorized in law. With respect to any housing with a mortgage insured or otherwise assisted pursuant to section 236 of the National Housing Act, the provisions of subsections
(f)and
(g)of section 236 of such Act notwithstanding, the fair market rental charge for each unit in such housing may be increased in accordance with this subsection, but the owner shall pay to the Secretary all rental charges collected in excess of the basic rental charges, in an amount not greater than the fair market rental charges as such charges would have been established under section 236(f) of such Act absent the requirements of this paragraph.
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Sec. 219
INCENTIVES TO EXTEND LOW-INCOME USE
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