PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3839

(2) REGULATIONS.—The Secretary of Agriculture shall issue 42 use i486
any regulations necessary to carry out the amendment made note
by paragraph (1) not later than the expiration of the 45-day
period beginning on the date of the enactment of this Act.
Not later than the expiration of the 30-day period beginning
on the date of the enactment of this Act, the Secretary shall
submit a copy of any regulations to be issued under tin's sub-
section to the Congress. The requirements of section 534(d)
of the Housing Act of 1949 and subsections (b) and (c) of
section 553 of title 5, United States Code, shall apply to any
such regulations.

(g) INDEPENDENT COST CERTIFICATIONS.—Section 517(jX3) of
the Housing Act of 1949 (42 U.S.C. 1487(jX3)) is amended by
inserting after "industry," the following: Independent audits of
project expenses,".

SEC. 708. NONPROFIT SET-ASIDE.

(a) IN GENERAL.—Section 515(w) of the Housing Act of 1949
(42 U.S.C. 1485(w)) is amended—

(1) in paragraph (1), by striking "not less than 7 percent
of the amounts available in fiscal year 1991 and not less than
9 percent of the amounts available in fiscal year 1992" and
inserting "not less than 9 percent of the amounts available
in fiscal years 1993 and 1994*;

(2) in paragraph (1), in the second sentence by striking
"or under whole or partial control with a for-profit entity*;

(3) in paragraph (1), by adding at the end the following
new sentence: *A partnership, that has as its general partner
a nonprofit entity or the nonprofit entity's for-profit subsidiary,
is eligible to receive funds set aside under this subsection
to sponsor a project which is receiving low-income housing
tax credits authorized under section 42 of the Internal Revenue
Code of 1986. For the purposes of this subsection, a nonprofit
entity is an organization that—

"(A) will own an interest in a project to be financed
under this section and will materially participate hi the
development and the operation of the project;

"(B) is a private organization that has nonprofit, tax
exempt status under section 501(cX3) or section 501(cX4)
of the Internal Revenue Code of 1986;

"(C) has among its purposes the planning, develop-
ment, or management of low-income housing or community
development projects; and

"(D) is not affiliated with or controlled by a for-profit
organization.";

(4) in paragraph (2), by adding at the end the following:
The Secretary may provide amounts available for reallocation
under this subsection in excess of $750,000 in a given State,
if such amounts are necessary to finance a project under this
section."; and

(5) by striking paragraph (3) and inserting the following:
"(3) UNUSED AMOUNTS.—

"(A) EQUITABLE DISTRIBUTION.—Any amounts set aside
under this subsection from the allocation for any State
that are not obligated by 9 months after the allocation,
shall first be pooled and made available to any other
eligible nonprofit entity in any State as defined in this