106 STAT. 3768 PUBLIC LAW 102-550—OCT. 28, 1992

or experience with the program established under this title
or under the Emergency Low Income Housing Preservation
Act of 1987.

"(3) CRITERIA.—The criteria developed under this sub-
section shall—

"(A) not assign any preference or priority to applica-
tions from eligible intermediaries based on their previous
participation in administering or receiving Federal grants
or loans (but may exclude applicants who have failed to
perform under prior contracts of a similar nature);

"(B) require an applicant to prepare a proposal that
demonstrates adequate staffing, qualifications, prior experi-
ence, and a plan for participation; and

"(C) permit an applicant to serve as the administrator

of assistance made available under section 253(d) or (e),

based on the applicant's suitability and interest.

"(4) GEOGRAPHIC COVERAGE.—The Secretary may select

more than 1 State or regional intermediary for a single State

or region. The number or intermediaries chosen for each State

or region may be based on the number of eligible low-income

housing projects in the State or region, provided there is no

duplication of geographic coverage by intermediaries in the

administration of the direct assistance grant program.

"(5) NATIONAL NONPROFIT INTERMEDIARIES.—National non-
profit intermediaries shall be selected to administer the assist-
ance made available under section 253 only with respect to
States or regions for which no other eligible intermediary,
acceptable to the Secretary, has submitted a proposal to
participate.

"(6) PREFERENCE.—With respect to assistance made avail-
able under section 254, preference shall be given to eligible
regional, State, and local intermediaries, over national nonprofit
organizations.

"(c) CONFLICTS OF INTEREST.—Eligible intermediaries selected
under subsection (b) to disburse assistance under section 253 shall
certify that they will serve only as delegated program administra-
tors, charged with the responsibility for reviewing and approving
grant applications on behalf of the Secretary. Selected
intermediaries shall—

"(1) establish appropriate procedures for grant administra-
tion and fiscal management, pursuant to standards established
by the Secretary; and

"(2) receive a reasonable administrative fee, except that
they may not provide other services to grant recipients with
respect to projects that are the subject of the grant application
and may not receive payment, directly or indirectly, from the
proceeds of grants they have approved,
(d) DEFINITION OF ELIGIBLE INTERMEDIARIES.—For purposes
of this section, the term 'eligible intermediary' means a State,
regional, or national organization (including a quasi-public organiza-
tion) or a State or local nousing agency that—

"(1) has as a central purpose the preservation of existing
affordable housing and the prevention or displacement;

"(2) does not receive direct Federal appropriations for
operating support;

"(3) in the case of a national nonprofit organization, has
been hi existence for at least 5 years prior to the date of