12 U.S.C. § 228

MODIFICATION OF EXISTING REGULATORY AGREEMENTS.

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“(a)In General.—If a plan of action cannot be approved within 300 days after a plan of action is submitted, the Secretary may, upon the request of the owner, modify existing regulatory agreements to—“(1) prevent involuntary displacement of current tenants (except for good cause);“(2) ensure that adequate expenditures will be made for maintenance and operation of the housing;“(3) extend any expiring project-based assistance on the housing for the term of the agreement;“(4) permit an increase in the allowable distribution that could be accommodated by a rise in rents on occupied units to rise to a level no higher than 30 percent of the adjusted income of the current tenants, as determined by the Secretary, except that rents shall not exceed the fair market rent for comparable housing under section 8(b) of the United States Housing Act of 1937 [42 U.S.C. 1437f(b)] and any resulting increase in rents for current tenants shall be phased in equally over a period of no less than 3 years unless such increase is less than 10 percent; and“(5) ensure that units becoming vacant during the term of the agreement are made available in accordance with section 225(b)(3)(F).“(b)Expiration.—Agreements entered into under this section shall expire upon the expiration of the 4-year period beginning on the date of the enactment of this Act [Feb. 5, 1988]. Upon the expiration of the agreements, the housing covered by the agreements shall be subject to any law then affecting low income affordability restrictions.