§ 4109 — Incentives To Extend Low-income Use

(a) (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 4104(a) of this title during the period in which rent increases are phased in as provided in section 4112(a)(2)(E) of this title, 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 1437f of title 42 (pursuant to subsection (b)(2) of this section). (b) 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 1437f of title 42, or (B) additional assistance under section 1437f of title 42 or an extension of any project-based assistance attached to the housing; and (3) An increase in the rents on units occupied by current tenants as permitted under section 4112 of this title. (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 1715z–6 of this title. (6) In the case of housing defined in section 4119(1)(A)(iii) of this title, redirection of the Interest Reduction Payment subsidies to a second mortgage. (7) of this title or a non-insured mortgage loan approved by the Secretary and the mortgagee. (8) Other incentives authorized in law.