SEC-804 -- USE OF RESOLUTION TRUST CORPORATION ELIGIBLE PROPERTIES FOR 

 
SECTION 202 HOUSING.
 
 (a) Authority To Purchase Resolution Trust Corporation Property for
Section 202 Program.-Section 202(d)(3) of the Housing Act of 1959 (12
U.S.C 1701q(d)(3)) is amended by adding at the end the following new
sentence: "The term also means the cost of acquiring existing housing
and related facilities from the Resolution Trust Corporation under
section 21A(c) of the Federal Home Loan Bank Act, the cost of
rehabilitation, alteration, conversion, or improvement, including the
moderate rehabilitation thereof, and the cost of the land on which the
housing and related facilities are located.".
 
 (b) Reservation of Authority Before Purchase.-Section 202(a) of the
Housing Act of 1959 (12 U.S.C. 1701q(a)) is amended by adding at the end
the following new paragraph:
 
 "(9) The Secretary may reserve loan authority under this section and
budget authority under section 8 of the United States Housing Act of
1937 for a project before acquisition of the project (or before an offer
or option to purchase is made on the project) from the Resolution Trust
Corporation under section 21A(c) of the Federal Home Loan Bank Act, if
the Secretary determines there is a reasonable likelihood that the
project will be acquired from the Resolution Trust Corporation under
section 21A(c).".
 
 (c) 20-Year Section 8 Contracts.-Section 202(g) of the Housing Act of
1959 (42 U.S.C. 1701q(g)) is amended by inserting after the period at
the end the following new sentence: "In the case of existing housing
and related facilities acquired from the Resolution Trust Corporation
under section 21A(c) of the Federal Home Loan Bank Act, the term of the
contract pursuant to such section 8 shall be 240 months.".
 
 (d) Modification of RTC Disposition Procedures for Properties Receiving
HUD or FMHA Assistance.-
 
 (1) In general.-Section 21A(c)(6) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(c)(6)) is amended by adding at the end the following new
subparagraph:
 
 "(D) Exception to disposition rules.-Notwithstanding the requirements
under subparagraphs (A), (B), (C), (D), (F), and (G) of paragraph (3),
the Corporation may provide for the disposition of eligible multifamily
housing properties as necessary to facilitate purchase of such
properties for use in connection with the section 202 of the Housing Act
of 1959.".
 
 (2) Conforming amendment.-Section 21A(c)(3) of the Federal Home Loan
Bank Act (12 U.S.C. 1441a(c)(3)) is amended by inserting after "Rules
governing disposition of eligible multifamily housing properties.-" the
following: "Except as provided under paragraph (6)(D), the Corporation
shall dispose of eligible multifamily housing property as follows:".
 
 (e) Exemption From Project Size Requirement Regarding Support Services
for Frail Elderly.-Section 213(d)(1)(A) of the Housing and Community
Development Act of 1974 (42 U.S.C. 1439(d)(1)(A)) is amended by
inserting after the period at the end the following new sentence: "The
preceding sentence shall not apply to projects acquired from the
Resolution Trust Corporation under section 21A(c) of the Federal Home
Loan Bank Act.".