106 STAT. 4016 PUBLIC LAW 102-550—OCT. 28, 1992

ing program recipients under title IV of this Act before the
date of the enactment of the Housing and Community Develop-
ment Act of 1992, may reapply for such assistance or for the
renewal of such assistance to continue services funded under
prior grants or to provide other services.

"(6) TECHNICAL ASSISTANCE.—Technical assistance in carry-
ing out the purposes of this subtitle.
"(b) USE RESTRICTIONS.—

"(1) ACQUISITION, REHABILITATION, AND NEW CONSTRUC-
TION.—Projects assisted under subsection (a) (1) or (2) shall
be operated for not less than 20 years for the purpose specified
in the application.

"(2) OTHER ASSISTANCE.—Projects assisted under subsection
(a) (3), (4), (5), or (6) (but not under subsection (a) (1) or
(2)) shall be operated for the purposes specified in the applica-
tion for the duration of the period covered by the grant.

"(3) CONVERSION.—If the Secretary determines that a
project is no longer needed for use as supportive housing and
approves the use of the project for the direct benefit of low-
income persons pursuant to a request for such use by the
recipient operating the project, the Secretary may authorize
the recipient to convert the project to such use.
"(c) REPAYMENT OF ASSISTANCE AND PREVENTION OF UNDUE
BENEFITS.—

"(1) REPAYMENT.—The Secretary shall require recipients
to repay 100 percent of any assistance received under subsection
(a) (1) or (2) if the project ceases to be used as supportive
housing within 10 years after the project is placed in service.
If such project is used as supportive housing for more than
10 years, the Secretary shall reduce the percentage of the
amount required to be repaid by 10 percentage points for each
year in excess of 10 that the project is used as supportive
housing.

"(2) PREVENTION OF UNDUE BENEFITS.—Except as provided
in paragraph (3), upon any sale or other disposition of a project
assisted under subsection (a) (1) or (2) occurring before the
expiration of the 20-year period beginning on the date that
the project is placed in service, the recipient shall comply
with such terms and conditions as the Secretary may prescnbe
to prevent the recipient from unduly benefiting from such sale
or disposition.

"(3) EXCEPTION.—A recipient shall not be required to com-
ply with the terms and conditions prescribed under paragraphs
(1) and (2) if the sale or disposition of the project results
in the use of the project for the direct benefit of very low-
income persons or if all of the proceeds are used to provide
supportive housing meeting the requirements of this subtitle.

42 USC 11384. "SEC. 424. SUPPORTIVE HOUSING.

"(a) IN GENERAL.—Housing providing supportive services for
homeless individuals shall be considered supportive housing for
purposes of this subtitle if—

"(1) the housing is safe and sanitary and meets any
applicable State and local housing codes and licensing require-
ments in the jurisdiction in which the housing is located; and
"(2) the housing—

"(A) is transitional housing;