RESIDENT HOMEOWNERSHIP PROGRAM.

SEC. 309. RESIDENT HOMEOWNERSHIP PROGRAM.Section 226(b) of the Housing and Community Development Act of 1987 (12 U.S.C. 4116(b)) is amended— (1) in paragraph (2)— (A) by inserting “and limitation on conditions of approval” before the period at the end of the paragraph heading; and (B) by inserting after the period at the end the following new sentence: “The Secretary may not require the prepayment of the mortgage on eligible low-income housing for the approval of a plan of action involving a homeowner-ship program for the housing.”; (2) in paragraph (3)— (A) in subparagraph (C), by striking “and” at the end; (B) in subparagraph (D), by striking the period at the end and inserting “; and”; and (C) by adding at the end the following new subparagraph: “(E) ) the low-income affordability restrictions shall continue to apply to any rental units in the housing for any period during which such units remain rental units”; (3) in paragraph (8), by striking “Resident” and inserting “Except in the case of limited equity cooperatives, resident,” and (4) in paragraph (10)— (A) by striking “, as determined by the Secretary,”; (B) by striking “section 222(d)” and inserting “section 222(c)”; and (C) by striking the last sentence.