TRANSFER TO QUALIFIED PURCHASERS.

SEC. 307. TRANSFER TO QUALIFIED PURCHASERS. (a) Eligibility for Assistance.—The matter preceding subparagraph (A) in section 22(d)(2) of the Housing and Community Development Act of 1987 (12 U.S.C. 411(d)(2)) is amended by inserting after “purchasers” the following: “(including all priority purchasers other than resident councils acquiring under the homeownership program authorized by section 226)”. (b) Project Oversight.—Section 220(d)(2)(D) of the Housing and Community Development Act of 1987 (12 U.S.C. 4110(d)(2)(D)) is amended by inserting before the semicolon the following: “, and in the case of a priority purchaser, meet project oversight costs”. (c) Return.—Section 220(d)(2)(E) of the Housing and Community Development Act of 1987 (12 U.S.C. 411(d)(2)(E)) is amended to read as follows: “(E) receive a distribution equal to an 8 percent annual return on any actual cash investment (from sources other than assistance provided under this title) made to acquire or rehabilitate the project;”. (d) Reimbursement.—Section 22(d)(2)(F) of the Housing and Community Development Act of 1987 (12 U.S.C. 4110(d)(2)(F)) is amended to read as follows: “(F) in the case of a priority purchaser, receive a reimbursement of all reasonable transaction expenses associated with the acquisition, loan closing, and implementation of an approved plan of action; and”. (e) Incentives.—Section 22(d)(3)(A) of the Housing and Community Development Act of 1987 (12 U.S.C. 4110(d)(3)(A)) is amended by striking “any residual receipts” and all that follows through “(b) or (c) and”.