102 STAT. 3270	PUBLIC LAW 100-628—NOV. 7, 1988
such preference, except that not more than 10 percent (or such
higher percentage determined by the Secretary to be necessary to
ensure that public housing agencies can assist families in accord-
ance with subsection (u)(2) or determined by the Secretary to be
appropriate for other good cause) of the families who initially
receive assistance in any 1-year period (or such shorter period
selected by the public housing agency before the beginning of its
first full year subject to this sentence) may be families who do not
qualify for such preference/'.
Subtitle B—Preservation of Low
Housing
SEC. 1021. NOTICE OF INTENT.
Section 222 of the Housing and Community Development Act of
1987 (12 U.S.C. 17151 note) is amended in the last sentence by
striking "notice or intent" and inserting "notice of intent".
SEC. 1022. PLAN OF ACTION.
 (a)	provision of information.—Section 223(a) of the Housing and
Community Development Act of 1987 (12 U.S.C. 17151 note) is
amended by inserting before the period at the end of the first
sentence the following: ", and any relevant market area and demo-
graphic information that the Secretary has custody of and that the
owner may use in preparing the plan".
 (b)	contents of plan.—Section 223 of the Housing and Commu-
nity Development Act of 1987 (12 U.S.C. 17151 note) is amended by
adding at the end the following new subsection:
"(d) authority To limit contents of plan.—The Secretary shall
limit the amount of appraisal, market area, and demographic
information required under this section in the case of a plan of
action requesting incentives.".
SEC. 1023. INCENTIVES TO EXTEND LOW INCOME USE.
Section 224(b) of the Housing and Community Development Act of
1987 (12 U.S.C. 17151 note) is amended in the matter preceding
paragraph (1) by striking "Such agreements" and inserting the
Contracts.	following: "Agreements entered into under subsection (a) that by
modifications to the existing regulatory agreement or mortgage
extend the low income affordability restrictions through the term of
the mortgage or, in the case of the prepayment of a mortgage, by a
recorded instrument impose low income affordability restrictions
(including the obligations specified in the regulatory agreement)
through a period equivalent to the term of the original mortgage".
SEC. 1024. CRITERIA FOR APPROVAL OF PLAN OF ACTION.
Section 225(a)(D of the Housing and Community Development Act
of 1987 (12 U.S.C. 17151 note) is amended-
(1) by inserting after "economic hardship for current tenants"
the following: "(and will not in any event result in (A) a
monthly rental payment by a current tenant that exceeds 30
percent of the monthly adjusted income of the tenant or an
increase in the monthly rental payment in any year that ex-
ceeds 10 percent (whichever is lower), or (B) in the case of a
current tenant who already pays more than such percentage, an
increase in the monthly rental payment in any year that ex-